"TXNM Energy just paid shareholders $0.4225 per share on February 13, 2026, marking a 3.7% increase from the previous quarter's $0.4075 payment. TXNM's dividend track record demonstrates consistency. The company has grown its quarterly payout from $0.22 in 2016 to $0.4225 in early 2026, representing 92% total growth over 10 years and a compound annual growth rate of approximately 6.8%. Recent annual increases have clustered in the 5-7% range, with the company maintaining a predictable quarterly payment schedule."
"Despite generating $508.2 million in operating cash flow during 2024, the utility spent $1.25 billion on capital expenditures, resulting in negative free cash flow of $738.9 million. This pattern has persisted for years. TXNM has posted negative free cash flow in every period from 2019 through 2024. The company paid $140.3 million in dividends during 2024 while generating no free cash flow to support those payments. Instead, TXNM relied on $684.4 million in financing cash flow (primarily debt and equity issuances) to bridge the gap."
TXNM Energy has increased its quarterly payout from $0.22 in 2016 to $0.4225 in early 2026, a 92% total increase and approximately 6.8% compound annual growth. The annualized dividend of $1.63 yields about 2.76% at a $59.39 share price, slightly above the Utilities Select Sector ETF. Operating cash flow was $508.2 million in 2024 while capital expenditures totaled $1.25 billion, producing negative free cash flow of $738.9 million. TXNM reported negative free cash flow each year from 2019–2024. Dividends of $140.3 million in 2024 were largely covered by $684.4 million in financing, leaving free cash flow coverage of just 0.19x.
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