Current Report: Essential Utilities May Gain 6.75% This Year

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The company was founded in1968 and is headquartered in Bryn Mawr, PA.

Essential Utilities, Inc. (WTRG) provides water, wastewater, and natural gas services through Regulated Water and Regulated Natural Gas segments. 

Three key data points gauge WTRG (or any dividend-paying entity):

(1) Price

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

WTRG Price

Essential Utilities’ single share price rose  $1.70 (or about 9.25%) from $37.89 to $38.10 in the past year, per Wednesday’s opening market report.

Five analysts cover the stock. Their consensus target price is  $1.70 higher than the $38.10 recent price. Furthermore, 9 years of price history shows an average  $1.20 annual price gain which I’ll use for an annual return; after I discuss dividends.

WTRG Dividends

Essential Utilities has paid quarterly dividends since September,1989.

The most recent Q dividend of $0.3425 was paid June 1st (to shareholders on record as of May 12th), and the resulting annual $1.37 annual payout yields a forward-looking 3.65% (per Wednesday’s opening market report.}

WTRG Returns

Putting it all together, as of June 10th, a possible gross gain of $2.57 was projected. The $1.20 per share historic annual gain was added to the $1.37 forward-looking annual dividend.

A little under $1000 invested in WTRG at Wednesday’s $38.10 opening share price would buy 26 shares which multiply the $2.57 gross gain to $67.45 for the coming year, or 6.75%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

WTRG’s projected annual dividend from $1K invested is $36.50. So Essential Utilities shows a dividend from $1,000 invested of $1.60 less than its $38.10 single share price as of Wednesday’s market opening.

The exact track of WTRG’s future share price and dividend will entirely be determined by market action and company finances.

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.