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California Water (CWT) Ups Dividend, Adds Shareholder Value
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California Water Service Group’s (CWT - Free Report) board of directors approved a dividend hike on Jan 27, 2021. Evidently, the market reacted positively to this news with the company’s shares gaining 0.5% in the last three sessions. The new annual dividend of 92 cents per share increased 8.2% from 85 cents, marking the utility’s 54th consecutive annual dividend hike.
The company’s 304th straight quarterly dividend of 23 cents per share will be paid out on Feb 19, 2021 to its stockholders of record on Feb 8, 2021. The new dividend yield of the utility is 1.68% compared with the S&P 500 composite’s 1.43% average.
Can This Dividend be Sustained?
The utility has witnessed dividend growth each year since 1967. These hikes reflect the company’s strong operating performance. It has been making efforts to expand its operations via both organic and inorganic prospects.
In the first three quarters of 2020, California Water Service invested $221.3 million, up 13.5% from $194.9 million spent in the same period of 2019. The company planned to invest $260-$290 million in 2020. In December, its unit Hawaii Water Service inked a deal to acquire Keauhou Community Services, Inc.'s wastewater system assets by dint of which, it will provide wastewater utility service to its customers in the Keauhou region on the island of Hawaii.
Also, in October, the company’s arm New Mexico Water Service entered into an agreement to buy Animas Valley Land and Water Co., which on conclusion will make it win 2,000 customers in northwest New Mexico. Prior to this, in September, Hawaii Water Service secured an approval to purchase Kalaeloa Water Company from Hunt Companies and in June, it bought Rainier View Water Company.
Moreover, in October, the utility completed the Palos Verdes Peninsula Water Reliability Project, instilling the local residents’ dependability on the drinking water infrastructure in the Palos Verdes Peninsula. We believe that the ongoing planned investments will help the company solidify its infrastructure and increase the reliability of its services, leading to continuous dividend hikes.
Other Utilities Hiking Dividend
Apart from California Water Service, other utility companies like NiSource Inc. (NI - Free Report) , Chesapeake Utilities Corporation (CPK - Free Report) and Essential Utilities Inc (WTRG - Free Report) are rewarding their shareholders with higher dividends despite the ongoing pandemic.
NiSource’s new annualized dividend is 88 cents per share while Chesapeake Utilities upped its quarterly dividend by 8.6% to 44 cents. Also, Essential Utilities raised its quarterly dividend by 7% to 25.07 cents per share.
In the past six months, shares of the company have rallied 16.3%, outperforming the industry’s 1.9% growth.
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California Water (CWT) Ups Dividend, Adds Shareholder Value
California Water Service Group’s (CWT - Free Report) board of directors approved a dividend hike on Jan 27, 2021. Evidently, the market reacted positively to this news with the company’s shares gaining 0.5% in the last three sessions. The new annual dividend of 92 cents per share increased 8.2% from 85 cents, marking the utility’s 54th consecutive annual dividend hike.
The company’s 304th straight quarterly dividend of 23 cents per share will be paid out on Feb 19, 2021 to its stockholders of record on Feb 8, 2021. The new dividend yield of the utility is 1.68% compared with the S&P 500 composite’s 1.43% average.
Can This Dividend be Sustained?
The utility has witnessed dividend growth each year since 1967. These hikes reflect the company’s strong operating performance. It has been making efforts to expand its operations via both organic and inorganic prospects.
In the first three quarters of 2020, California Water Service invested $221.3 million, up 13.5% from $194.9 million spent in the same period of 2019. The company planned to invest $260-$290 million in 2020. In December, its unit Hawaii Water Service inked a deal to acquire Keauhou Community Services, Inc.'s wastewater system assets by dint of which, it will provide wastewater utility service to its customers in the Keauhou region on the island of Hawaii.
Also, in October, the company’s arm New Mexico Water Service entered into an agreement to buy Animas Valley Land and Water Co., which on conclusion will make it win 2,000 customers in northwest New Mexico. Prior to this, in September, Hawaii Water Service secured an approval to purchase Kalaeloa Water Company from Hunt Companies and in June, it bought Rainier View Water Company.
Moreover, in October, the utility completed the Palos Verdes Peninsula Water Reliability Project, instilling the local residents’ dependability on the drinking water infrastructure in the Palos Verdes Peninsula. We believe that the ongoing planned investments will help the company solidify its infrastructure and increase the reliability of its services, leading to continuous dividend hikes.
Other Utilities Hiking Dividend
Apart from California Water Service, other utility companies like NiSource Inc. (NI - Free Report) , Chesapeake Utilities Corporation (CPK - Free Report) and Essential Utilities Inc (WTRG - Free Report) are rewarding their shareholders with higher dividends despite the ongoing pandemic.
NiSource’s new annualized dividend is 88 cents per share while Chesapeake Utilities upped its quarterly dividend by 8.6% to 44 cents. Also, Essential Utilities raised its quarterly dividend by 7% to 25.07 cents per share.
Zacks Rank & Price Performance
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past six months, shares of the company have rallied 16.3%, outperforming the industry’s 1.9% growth.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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