Essential Utilities Offers 7% Dividend Hike to Stakeholders

Essential Utilities Inc. (WTRG) recently announced a quarterly dividend of $0.2682 per share, a hike of 7% from its previous dividend of $0.2507 per share. The dividend will be paid on September 1, 2021, to shareholders of record as of August 13, 2021.

The company’s annual dividend of $1.0728 per share now reflects a dividend yield of 2.3% based on Friday’s closing price of $47.22.

Essential is one of the largest publicly traded water, wastewater, and natural gas providers in the U.S., serving approximately 5 million people across 10 states.

CEO of Essential Utilities, Christopher Franklin, said, “We are proud of our commitment to providing safe and reliable access to natural resources while continuing our long history of paying consistent and growing dividends. Our focus on operational excellence, investment in infrastructure, protecting the environment, serving our customers and delivering value to our shareholders is evidenced by this increase, which marks 30 consecutive years of dividend growth.” (See Essential Utilities stock chart on TipRanks)

On May 25, Barclays analyst Tim Long reiterated a Hold rating on the stock with a price target of $51, implying upside potential of 8% from current levels.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 3 Buys and 2 Holds. The average Essential Utilities price target of $51.80 implies 9.7% upside potential from current levels. Shares have gained 8.1% over the past year.

Essential Utilities scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to outperform market averages.

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