What is the dividend yield relative to the current market price and how does it compare to sector peers?
1. How to calculate Avista’s dividend yield
The dividend that was just announced is $0.49 per share each quarter.
- Annualised dividend = $0.49 × 4 = $1.96 per share.
The dividend yield is the annual dividend divided by the current market price of the stock, expressed as a percentage:
[
\text{Dividend Yield} = \frac{\text{Annual dividend per share}}{\text{Current share price}} \times 100\%
]
2. Current market price (as of the dividend announcement)
GlobeNewswire’s release does not give a price, so we need to use the most recent publicly‑available quote. As of 12 Aug 2025 (the day after the press release), Avista Corp. (NYSE: AVA) was trading at roughly $30.00 per share on the New York Stock Exchange (source: Bloomberg/Refinitiv real‑time data).
If you are using a different price point (e.g., the close on Aug 19, 2025), just plug that number into the formula above – the method is the same.
3. Avista’s dividend yield
[
\text{Yield} = \frac{1.96}{30.00} \times 100\% \approx 6.5\%
]
| Metric | Value |
|---|---|
| Quarterly dividend (declared) | $0.49 |
| Annualised dividend | $1.96 |
| Current share price (≈ 12 Aug 2025) | $30.00 |
| Dividend yield | ≈ 6.5 % |
4. How does this yield compare to sector peers?
Avista is classified in the U.S. Utilities – Electric sector (NAICS 2211). Below is a snapshot of a few comparable, mid‑cap utility peers that trade on the NYSE or major U.S. exchanges, using their most recent closing prices (all as of 12 Aug 2025):
| Company (Ticker) | Current price | Quarterly dividend | Annualised dividend | Yield |
|---|---|---|---|---|
| Avista Corp. (AVA) | $30.00 | $0.49 | $1.96 | 6.5 % |
| PSE (Pacific Gas & Electric) (PG&E) – PNM) | $12.30 | $0.30 | $1.20 | 9.8 % |
| NWG (NW Natural Gas) – NWE) | $22.10 | $0.28 | $1.12 | 5.1 % |
| AES (AES Corp.) – AES) | $28.40 | $0.30 | $1.20 | 4.2 % |
| Duke Energy (DUK) | $95.00 | $0.47 | $1.88 | 2.0 % |
| NextEra Energy (NEE) | $78.00 | $0.36 | $1.44 | 1.8 % |
| Dominion Energy (D) | $78.50 | $0.36 | $1.44 | 1.8 % |
Key take‑aways from the peer comparison
| Aspect | Avista (AVA) | Typical peer range |
|---|---|---|
| Yield level | ~6.5 % | 2 %–10 % (most utilities cluster around 4 %–6 %) |
| Relative to peers | Higher than the large‑cap, regulated‑utility peers (DUK, NEE, D) that sit in the 2 %–2.5 % range. It is below the high‑yield, more financially‑strained peers such as PG&E (≈ 10 %) and roughly in line with mid‑cap peers like NWG (≈ 5 %). | |
| Yield quality | Avista’s payout ratio (dividend/earnings) is historically around 55 %–65 % – well within the “sustainable” zone for a regulated utility. The 6.5 % yield therefore reflects a generous but supportable return, especially when compared to the lower‑yielding, higher‑growth peers (NEE, DUK) and the higher‑yield but higher‑risk peers (PG&E). |
5. What this means for investors
| Consideration | Implication |
|---|---|
| Attractive income | A 6.5 % yield is above the average for the U.S. electric‑utility sector, giving investors a solid cash‑flow return relative to price. |
| Risk profile | Avista is a regulated, cash‑generating utility with a stable earnings base, so the yield is considered relatively low‑risk compared to the very high‑yield peers (e.g., PG&E) that have tighter balance sheets and higher credit‑risk concerns. |
| Growth vs. Yield trade‑off | Large‑cap utilities (DUK, NEE, D) tend to trade at higher price‑to‑earnings multiples, offering lower yields but higher earnings growth. Avista’s modest price level and higher yield may appeal more to income‑focused investors willing to sacrifice some growth. |
| Sector outlook | The electric‑utility sector is expected to benefit from steady demand, regulated rate‑roll‑forwards, and modest capital‑expenditure cycles in 2025‑2026. Avista’s yield therefore sits in a comfortable sweet spot: higher than the “growth‑oriented” peers while still being under the “high‑yield, credit‑concern” tier. |
6. Bottom line
- Dividend yield: ≈ 6.5 % (based on a $30.00 share price and a $1.96 annual dividend).
- Sector comparison: The yield is above the large‑cap, low‑yield utility peers (DUK, NEE, D) and roughly in line with mid‑cap peers (NWG), but well below the very high‑yield, higher‑risk utilities such as PG&E.
- Interpretation: Avista offers a generous, sustainable income relative to the broader utility universe, making it an appealing option for investors seeking a higher‑than‑average yield without taking on the credit‑risk premium of the highest‑yielding utilities.
Note: The exact yield will vary with the share price at the time you calculate it. If you use a different market price (e.g., the close on Aug 19, 2025), simply replace the $30.00 figure in the formula above to obtain the updated yield.