BRYN MAWR, Pa. - Essential Utilities Inc. (NYSE: NYSE:WTRG) has announced a quarterly cash dividend increase to $0.3255 per share, to be distributed on September 3, 2024, to shareholders on record as of August 12, 2024. This marks a 6.0% rise from the September 2023 dividend of $0.3071 per share.
The company, known for its operations under the Aqua and Peoples brands, has a longstanding history of providing dividends, with this quarter being the 79th consecutive year of such payouts. Essential Utilities also boasts a track record of increasing dividends, having done so 34 times over the past 33 years.
Essential Utilities provides water, wastewater, and natural gas services to approximately 5.5 million people across nine states in the United States. The company prides itself on delivering safe, clean, and reliable services, emphasizing sustainable growth and operational excellence. In addition to its core services, Essential Utilities is actively involved in environmental stewardship, protecting over 7,600 acres of natural habitats within its operational footprint.
Essential Utilities Inc. has reported a strong first quarter for 2024, with GAAP earnings ranging between $0.90 and $0.97 per share. This robust performance was buoyed by operational strength in its gas and water divisions and a significant gain from the sale of energy projects. Despite a decrease in operating revenues due to lower natural gas commodity prices, the company saw growth in net income and earnings per share, primarily due to the energy project sale.
Simultaneously, Baird maintained an Outperform rating on Essential Utilities but lowered the shares target to $43.00 from the previous $44.00. The adjustment follows the company's first-quarter results, which were adversely affected by unfavorable weather conditions. Baird's analysis suggests that Essential Utilities is well-positioned to capitalize on industry consolidation trends, especially as municipal systems may struggle to meet the Environmental Protection Agency's compliance standards.
These recent developments also include Essential Utilities' proactive measures in its operations and regulatory filings, such as its initiatives to address PFAS contamination in the water business and its approach to weather-related challenges in the utility sector. Furthermore, the company is well-positioned to comply with new EPA limits on PFAS, planning to spend at least $450 million on mitigation. h.
InvestingPro Insights
Essential Utilities Inc. (NYSE: WTRG) continues to demonstrate its commitment to shareholders with the recent announcement of its quarterly cash dividend increase. An InvestingPro Tip highlights that Essential Utilities has maintained dividend payments for an impressive 54 consecutive years, reinforcing its position as a reliable dividend-paying stock. Additionally, Essential Utilities is trading at a high revenue valuation multiple, indicating that investors may expect the company's revenue to continue to grow or remain stable in the future.
InvestingPro Data provides a deeper look into the company's financial health. Essential Utilities boasts a market capitalization of $11.15 billion, reflecting its substantial presence in the utility sector. The company's price-to-earnings (P/E) ratio stands at 19.2, which, when compared to its near-term earnings growth, suggests that the stock is trading at a low P/E ratio. This could signal that the stock is potentially undervalued relative to its earnings potential. Moreover, the dividend yield is currently at 3.02%, which is attractive to income-focused investors, especially in a market where stable income streams are highly valued.
For investors seeking more comprehensive analysis and additional InvestingPro Tips, there are currently 9 more tips available which can be accessed through the company's InvestingPro page at https://www.investing.com/pro/WTRG. These tips could provide valuable insights into Essential Utilities' future performance and help investors make more informed decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.