Our analysis is based on comparing Artesian Resources Corp. with the following peers – York Water Company, Middlesex Water Company, Cadiz Inc., Aqua America, Inc., Connecticut Water Service, Inc., SJW Group, American States Water Company, California Water Service Group and American Water Works Company, Inc. (YORW-US, MSEX-US, CDZI-US, WTR-US, CTWS-US, SJW-US, AWR-US, CWT-US and AWK-US).
Artesian Resources Corp.’s dividend yield is 2.48 percent and its dividend payout is 62.12 percent. This compares to a peer median dividend yield of 1.98 percent and a payout level of 58.75 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 25 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), ARTNA-US paid a medium quality dividend, which represents a yield of 2.46% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 2 were medium quality and 3 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to June 30, 2017), ARTNA-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.89x), investing cash flow (coverage of -3.99x), issuance cash flow (coverage of 1.11x) and twelve-month prior cash (coverage of 0.03x), for a total dividend coverage of 1.04x.
ARTNA-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.08x).
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||3.51||3.56||3.74||3.11||2.81||2.48|
|Dividend Payout (%)||70.03||87.54||79.6||69.31||63.81||62.12|
A complete list of metrics and analysis is available on the company page.
Artesian Resources Corp. is a holding company, which engages in the provision of water resource management. Its activities include residential, commercial water and wastewater, government and contract services, and developers. The company was founded in 1927 and is headquartered in Newark, DE.
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