Unlock the Exclusive World of Dividend Kings
Picture this: a group of companies that have managed to raise dividends for over 50 consecutive years, standing as pillars of stability and reliability in the ever-changing market landscape. These are the Dividend Kings – a rare breed that all investors should keep an eye on for long-term growth and income.
To get a glimpse into this elite group, we’ve compiled a comprehensive list of all the Dividend Kings, complete with vital financial metrics like dividend yields and price-to-earnings ratios. You can access this treasure trove by simply clicking the link below.
So, what makes a company like Middlesex Water Company (MSEX) worthy of a spot among these dividend royalty? Let’s delve into the company’s business overview, growth potential, competitive advantages, and expected returns to find out.
Business Overview
Established in 1897, Middlesex Water Company has been a stalwart in the water and wastewater utility industry for over a century. With operations primarily in New Jersey and an annual revenue of around $180 million, the company focuses on regulated services like selling, distributing, and treating water, along with non-regulated contracts for municipal water and wastewater systems in New Jersey and Delaware.
While the regulated side remains the primary revenue driver, Middlesex’s strategic presence in regions like Middlesex County, serving over 61,000 retail customers, has significantly boosted its bottom line. The company’s recent earnings report highlighted a robust performance, with revenue growing by 18% in the last quarter and earnings per share soaring by 43%, fueled by rate hikes and increased customer demand.
Growth Prospects
Despite being a utility company known for steady growth, Middlesex has defied convention with a solid 10% earnings-per-share compound annual growth rate over the past decade. Leveraging infrastructure investments and consistent rate increases, the company is poised for continued growth, particularly in regulated business areas, ensuring sustainable earnings growth in the foreseeable future.
Apart from rate hikes, Middlesex’s expansion into new service contracts, like the recent agreement with the Borough of Avalon and the long-term contract with Dover Air Force Base in Delaware, points towards diversified growth avenues beyond traditional operations. With an anticipated 4.7% annual increase in earnings per share over the next five years, Middlesex is set to maintain its upward trajectory.
Competitive Advantages & Recession Performance
As a water utility company operating in a near-monopoly market, Middlesex enjoys inherent advantages in serving essential needs that remain consistent regardless of economic conditions. With a well-diversified revenue stream and a history of outperforming during economic downturns, Middlesex’s resilience was evident during the Great Recession, highlighting its ability to weather economic storms and emerge stronger.
Valuation & Expected Total Returns
Having recently crossed the prestigious milestone of 50 consecutive years of dividend increases, Middlesex continues to reward investors with a stable 2.1% yield. With a projected average annual EPS growth of 4.7% over the next five years and a fair valuation target of 25 times earnings by 2029, Middlesex is estimated to deliver a solid 3.7% return per year through the end of the decade.
In Conclusion
Middlesex Water Company epitomizes the essence of a Dividend King – a beacon of stability, growth, and resilience in an ever-changing market landscape. While the stock may be trading at a premium currently, the company’s rich history of dividend growth and steady performance make it a standout choice for income-oriented investors seeking long-term stability and growth.
Dive into the world of Dividend Kings and unlock the potential of consistent growth and income with companies like Middlesex Water Company standing as symbols of reliability and value in your investment portfolio.
