You’ve probably seen the ticker OTTR pop up on your screen lately. Maybe you noticed it hitting a 52-week high around $88.47 in mid-January 2026. If you're looking at the Otter Tail Power Company stock price, you're actually looking at the Otter Tail Corporation, a weirdly effective hybrid of a boring utility and a high-stakes manufacturing business.
Honestly, it’s a bit of a Jekyll and Hyde situation.
Most people see "Power Company" and think of a steady, slow-moving dividend payer. They aren't wrong, but they're only seeing half the picture. Otter Tail Power Company is the regulated heart of the business, but the "tail" is a collection of manufacturing and plastics companies that can swing the stock price wildly when you least expect it.
The Current State of the Otter Tail Power Company Stock Price
Right now, as of late January 2026, the stock is hovering near $87.85. It's been a busy start to the year. Just a few days ago, the board announced a 10% increase in the quarterly dividend to $0.5775 per share. That’s the second year in a row we’ve seen a double-digit hike.
That move signals confidence.
But if you look at the P/E ratio, it’s sitting around 13.2x. That’s relatively low compared to the broader utility sector, which often trades closer to 18x or 19x. Why the discount? It's simple: the market is terrified that the "Plastics" side of the business—specifically T.O. Plastics and Vinyltech—is about to cool off after a massive post-pandemic run.
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Why the "Simple Utility" Narrative Fails
If you just treat this like a regular power company, you’ll get burned. The electric utility side (Otter Tail Power) provides about 70% to 75% of the long-term value, but the Manufacturing and Plastics segments provide the "juice" for the stock's growth.
- Manufacturing: They make everything from custom plastic packaging to offshore wind towers.
- Plastics: They produce PVC pipes. This segment was a gold mine in 2022-2024 because of supply chain crunches.
- Utility: This is the bedrock. They serve about 133,000 customers in Minnesota, North Dakota, and South Dakota.
Basically, when housing starts are up, the Plastics segment prints money. When the economy slows down, the Utility segment keeps the lights on and the dividends flowing. It’s a hedge, but it’s a hedge that makes the Otter Tail Power Company stock price much more volatile than your average "widow-and-orphan" utility stock.
What’s Actually Moving the Needle in 2026?
It isn't just about how many people in Fergus Falls, Minnesota, are turning on their heaters.
Investors are currently hyper-focused on the $1.4 billion capital investment plan the company has laid out through 2028. A big chunk of that is going into renewable energy, like the Solway Solar project and wind repowering.
But there’s a catch.
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Otter Tail just filed for a rate increase in Minnesota back in October 2025. Regulators can be finicky. If the Minnesota Public Utilities Commission (PUC) pushes back on those rate hikes, the Utility segment’s earnings growth could stall. Currently, analysts like those at Zacks and Simply Wall St have a consensus fair value of around $83.00.
Wait, the stock is at $87.85 but fair value is $83.00?
Yeah. That suggests the stock might be about 6% overvalued right now. The recent run-up was likely driven by that 10% dividend hike and the announcement of new board members like Chris Clark and Steve Rasche, which investors usually read as a sign of strategic tightening.
The Elephant in the Room: PVC Pricing
We have to talk about the "Plastics" problem. During the weird years of 2021 and 2022, PVC prices went parabolic. Otter Tail's earnings per share (EPS) exploded because of it.
Now, we’re seeing a "return to normal."
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Management has been very upfront about this. They expect Plastics margins to eventually shrink back to pre-2021 levels. If you’re buying the Otter Tail Power Company stock price today, you’re betting that the Utility segment can grow fast enough to offset the shrinking profits from the PVC pipe business.
Is the 2.6% Yield Enough?
For a utility, a 2.63% dividend yield is... fine. It's not spectacular. You can find 4% or 5% elsewhere in the sector.
However, Otter Tail has paid a dividend for 88 consecutive years. That is a staggering track record. They aren't just paying it; they're growing it. The annual payout is now $2.31 per share.
If you're a long-term holder, you're looking at the total shareholder return (TSR). Over the last five years, OTTR has delivered a TSR of about 131%. That absolutely crushes the average utility. But again, that was fueled by a once-in-a-generation boom in their manufacturing divisions.
Actionable Insights for Investors
So, what should you actually do with this information?
- Watch the EPS Floor: The company reported an EPS of $1.86 for Q3 2025, which actually missed analyst estimates of $1.91. If the next earnings report in February 2026 shows a further slide in manufacturing profits, that $88 price tag might start to look very heavy.
- Monitor the Minnesota Rate Case: This is the single biggest "known unknown" for the utility side. A win here secures the 5% to 7% growth rate they've promised for the electric segment.
- Check the "Fair Value" Gap: If the stock pulls back toward that $81-$83 range, it becomes a much more attractive entry point. At nearly $88, you’re paying a premium for the recent dividend news.
- Diversification is Key: Don't treat this like a pure-play utility. It’s more like a mid-cap industrial stock with a utility attached to it.
The Otter Tail Power Company stock price is a story of transition. They are trying to pivot away from the "sugar high" of pandemic-era manufacturing profits toward a stable, green-energy-focused utility future. It’s a smart move, but transitions are rarely a straight line up.
Keep an eye on the February 16, 2026, earnings call. That will be the moment of truth for whether the current momentum is sustainable or just a temporary spike.