Artesian Resources Corp. : ARTNA-US: Dividend Analysis : February 10th, 2017 (record date) : By the numbers : March 22, 2017

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 Yield
Dividend Quality Score

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.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

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).

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
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.

Company Profile

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.


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