Our analysis is based on comparing WGL Holdings, Inc. with the following peers – Atmos Energy Corporation, New Jersey Resources Corporation, South Jersey Industries, Inc., Chesapeake Utilities Corporation, National Fuel Gas Company, NiSource Inc, UGI Corporation and Genie Energy Ltd. Class B (ATO-US, NJR-US, SJI-US, CPK-US, NFG-US, NI-US, UGI-US and GNE-US).
Dividend Quality Overview
- Over the last twelve months (prior to June 30, 2017), WGL-US paid a low quality dividend, which represents a yield of 2.38% 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 3 were medium quality and 2 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), WGL-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 2.26x), investing cash flow (coverage of -6.44x), issuance cash flow (coverage of 5.11x) and twelve-month prior cash (coverage of 0.33x), for a total dividend coverage of 1.34x.
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 (%)||3.72||3.89||4.03||3.18||2.9||2.38|
|Dividend Payout (%)||58.58||107.1||84.88||69.75||58.16||56.84|
A complete list of metrics and analysis is available on the company page.
WGL Holdings, Inc. engages in the sale, and delivery of natural gas and provides energy-related products and services through its subsidiaries. It operates through the following segments: Regulated Utility, Retail Energy-Marketing, Commercial Energy Systems, and Midstream Energy Services. The Regulated Utility segment is represents the assets of Washington Gas, Hampshire, and WGL. The Retail Energy-Marketing segment is comprised of the operations of WGL Energy Services, which competes with regulated utilities and other unregulated third party marketers to sell natural gas and/or electricity directly to residential, commercial and industrial customers in Maryland, Virginia, Delaware, Pennsylvania and the District of Columbia. The Commercial Energy Systems segment is the operations of WGL Energy Systems, WGSW and the results of operations of affiliate owned commercial distributed energy projects. The Midstream Energy Services segment is consists of the operations of WGL Midstream, engages in investing in and optimizing natural gas pipelines and storage facilities in the Midwest and Eastern United States. The company was founded on November 1, 2000 and is headquartered in Washington, DC.
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