Why IDACORP (IDA) Is Up 5.1% After Dividend Hike And US$110 Million Rate Increase

In the past week, IDACORP’s board declared a quarterly common dividend of US$0.88 per share, payable on March 2, 2026 to shareholders of record as of February 5, 2026, while its Idaho Power subsidiary secured regulatory approval for a US$110 million rate increase effective January 2026. Together with supportive analyst coverage, this combination of dividend income and approved rate relief highlights the importance of regulation and capital returns in IDACORP’s investment case. Building on the fresh rate increase approval, we’ll now examine how these developments may influence IDACORP’s existing investment narrative.

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IDACORP Investment Narrative Recap

IDACORP appeals to investors who want regulated utility exposure, where returns are shaped by allowed rates, prudent capital spending and consistent dividends. The recent dividend affirmation and Idaho Power’s US$110,000,000 rate increase approval support the near term earnings and cash flow outlook, while the biggest current risk remains the need for regulators to keep allowing timely recovery of rising infrastructure and resource investment costs. Overall, these announcements modestly reinforce, rather than change, the existing thesis.

Among the latest updates, the Idaho Public Utilities Commission’s approval of a US$110,000,000 rate increase is the most directly relevant, as it speaks to regulatory support at a time when IDACORP faces sizeable capital needs across transmission, generation and reliability projects. For investors focused on future earnings growth and return on equity, this decision helps address concerns about regulatory lag and cost recovery, even as weather related hydro variability and rising grid hardening costs remain key watchpoints.

Yet behind the reassuring rate approval, investors should still be aware of how ongoing capital investment could pressure returns if regulators ever…

Read the full narrative on IDACORP (it’s free!)

IDACORP’s narrative projects $2.3 billion revenue and $441.8 million earnings by 2028.

Uncover how IDACORP’s forecasts yield a $140.50 fair value, a 4% upside to its current price.

Exploring Other PerspectivesIDA 1-Year Stock Price Chart

Four fair value estimates from the Simply Wall St Community span roughly US$106 to US$140 per share, underlining how differently individual investors can view IDACORP. Set against this spread, the recent US$110,000,000 rate approval highlights why regulatory outcomes may play such a central role in shaping the company’s future performance and why it is worth weighing several viewpoints before forming your own.

Explore 4 other fair value estimates on IDACORP – why the stock might be worth as much as $140.50!

Build Your Own IDACORP Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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