Our analysis is based on comparing Artesian Resources Corp. with the following peers – Aqua America, Inc., York Water Company, Cadiz Inc., Connecticut Water Service, Inc., Middlesex Water Company, SJW Group, American States Water Company, California Water Service Group and American Water Works Company, Inc. (WTR-US, YORW-US, CDZI-US, CTWS-US, MSEX-US, SJW-US, AWR-US, CWT-US and AWK-US).
Artesian Resources Corp.’s dividend yield is 2.92 percent and its dividend payout is 67.56 percent. This compares to a peer median dividend yield of 2.01 percent and a payout level of 55.55 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 17 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 September 30, 2016), ARTNA-US paid a low quality dividend, which represents a yield of 2.89% 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 September 30, 2016), ARTNA-US paid a low 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 3.48x), investing cash flow (coverage of -3.06x), issuance cash flow (coverage of 0.54x) and twelve-month prior cash (coverage of 0.06x), for a total dividend coverage of 1.03x.
ARTNA-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.17x).
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||3.82||3.51||3.56||3.74||3.11||2.92|
|Dividend Payout (%)||91.88||70.03||87.54||79.6||69.31||67.56|
A complete list of metrics and analysis is available on the company page.
Artesian Resources Corp. is a holding company, which is engaged in the water resource management. The company through its subsidiaries offers water, wastewater and other services. It is focused on a wide spectrum of activities, including 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. The company 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. Artesian Resources was founded in 1927 and is headquartered in Newark, DE.
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