Black Hills Corporation (BKH): A Bull Case Theory

We came across a bullish thesis on Black Hills Corporation on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on BKH. Black Hills Corporation’s share was trading at $74.04 as of February 3rd. BKH’s trailing and forward P/E were 18.43 and 16.67 respectively according to Yahoo Finance.

Black Hills Corporation (BKH) stands out as a resilient U.S.-based utility, serving approximately 1.35 million electric and gas customers across eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. The company has built a reputation for reliability and operational excellence, balancing traditional energy operations with strategic investments in transmission, generation, and distribution infrastructure.

Its diversified portfolio, spanning utility-scale projects, clean energy integration, and partnerships with industrial and data center clients, positions it well to meet growing demand while maintaining stable cash flows. Black Hills’ commitment to shareholders is evident in its 3.71% dividend yield and a remarkable 55 consecutive years of dividend increases, supported by a prudent 68.18% payout ratio and steady earnings growth, with dividends rising 25% over the past five years.

Financially, the company reported Q3 2025 revenue of $461 million, net income of $121 million, operating income of $154 million, and EPS of $0.42, reflecting year-over-year growth of 9.2% in revenue and 6.1% in EPS, underpinned by increased customer demand and disciplined capital allocation.

Looking forward, Black Hills is investing $4.7 billion from 2025 to 2029, including $1 billion in 2025 alone, to enhance infrastructure, expand transmission and distribution capacity, and integrate clean energy resources. Its Colorado Clean Energy Plan aims to add 400 MW of solar and battery storage by 2029, while the data center pipeline exceeds 1 gigawatt, highlighting a strong recurring revenue growth engine.

With a rich history dating to 1941, strategic acquisitions, and a forward-looking approach to sustainable energy, Black Hills combines steady financial performance, shareholder-friendly dividends, and robust growth initiatives, making it a compelling utility investment with both reliability and upside potential.

Previously, we covered a bullish thesis on Evergy, Inc. (EVRG) by Hidden Market Gems in April 2025, which highlighted its defensive profile, resilience amid macro uncertainty, and high-yield, low-volatility nature. EVRG’s stock price has appreciated by approximately 19.38% since coverage. Serhio MaxDividends shares a similar view but emphasizes Black Hills Corporation’s (BKH) diversified operations, long dividend growth streak, and clean energy investments.

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Disclosure: None.