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 2.75 percent and its dividend payout is 63.81 percent. This compares to a peer median dividend yield of 2.12 percent and a payout level of 57.37 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 December 31, 2016), ARTNA-US paid a medium quality dividend, which represents a yield of 2.73% 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 December 31, 2016), 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 3.64x), investing cash flow (coverage of -3.44x), issuance cash flow (coverage of 0.80x) and twelve-month prior cash (coverage of 0.03x), for a total dividend coverage of 1.03x.
ARTNA-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.63x).
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||2.75|
|Dividend Payout (%)||70.03||87.54||79.6||69.31||63.81||63.81|
A complete list of metrics and analysis is available on the company page.
Artesian Resources Corp. is a holding company that engages in the provision of water resource management. Its services involves identifying new and dependable sources of water supply; developing wells, treatment plants and delivery systems to get water to customers; educating customers on the wise use of water and providing responsible wastewater management to assist with recharge of the aquifers. It distributes and sells water, including water for public and private fire protection, to residential, commercial, industrial, municipal and utility customers throughout the states of Delaware, Maryland and Pennsylvania. The company was founded in 1927 and is headquartered in Newark, DE.
The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.