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Global Water Resources (GWRS) Board Allows 1% Dividend Hike
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Global Water Resources Inc. (GWRS - Free Report) announced that its board of directors has increased its dividend by 1%. It has also declared an increased monthly cash dividend of 2.508 cents per share under its dividend policy. This compares with the previous quarter’s monthly cash dividend of 2.483 cents per share. The new dividend will be payable on Dec 28, 2023, to stockholders of record as of Dec 14, 2023.
This increased monthly dividend resulted in an annualized dividend of 30.096 cents per share compared with the previous level of 29.796 cents. The current dividend yield is 2.44%, higher than the Zacks S&P 500 Composite's average of 1.42%.
Can GWRS Sustain Dividend Hikes?
Global Water Resources distributes more than 1 billion gallons of recycled water annually and has recycled over 15.9 billion gallons since 2004. The company is well-known for implementing Total Water Management (TWM). TWM is a holistic approach to water management that allows for intelligent management programs, including remote metering systems and other cutting-edge technologies, rate structures and incentives that deliver real energy savings.
The company has grown through its investments in new initiatives, acquisitions and organic expansion, which has led to exceptional performance and cash flow.
GWRS expects to increase its long-term investments in existing utilities to improve revenues, reduce expenses and build a rate base to provide safe, reliable services. During the third quarter of 2023, the company invested $4.9 million in infrastructure projects to support existing utilities and continued growth.
The improving economic condition in Arizona resulted in a growing customer base and fresh demand for GWRS’ services. The company invested $49.7 billion of capital in Arizona during 2020-2022, which implies an increase of 588% over the preceding three years.
GWRS’ growth prospects and ability to further enhance its performance indicate that management will have enough funds to sustain its shareholder-friendly initiatives in the future.
Legacy of Dividend Payment
Companies involved in utility services generally have stable operations and earnings. Consistent performance, regulated returns and the ability to generate cash flows allow utilities to reward shareholders with regular dividends.
In the past few months, Spire Inc. (SR - Free Report) , IDACORP Inc. (IDA - Free Report) and Pinnacle West Capital Corp. (PNW - Free Report) have raised their quarterly dividend rate by 4.9%, 5.1% and 1.7%, respectively.
The Zacks Consensus Estimate for Spire’s fiscal 2024 earnings is pegged at $4.35 per share, implying an increase of 1.2% in the past 60 days. SR’s current dividend yield is 4.72%.
The Zacks Consensus Estimate for IDACORP’s 2023 earnings is pinned at $5.12 per share, implying an increase of 1.6% in the past 60 days. IDA’s current dividend yield is 3.44%.
The Zacks Consensus Estimate for Pinnacle West Capital’s 2023 earnings is pegged at $4.24 per share, implying an increase of 1.4% in the past 60 days. PNW’s current dividend yield is 4.7%.
Price Performance
In the past six months, GWRS’ shares have risen 0.8% against the industry’s average decline of 40.8%.
Image: Bigstock
Global Water Resources (GWRS) Board Allows 1% Dividend Hike
Global Water Resources Inc. (GWRS - Free Report) announced that its board of directors has increased its dividend by 1%. It has also declared an increased monthly cash dividend of 2.508 cents per share under its dividend policy. This compares with the previous quarter’s monthly cash dividend of 2.483 cents per share. The new dividend will be payable on Dec 28, 2023, to stockholders of record as of Dec 14, 2023.
This increased monthly dividend resulted in an annualized dividend of 30.096 cents per share compared with the previous level of 29.796 cents. The current dividend yield is 2.44%, higher than the Zacks S&P 500 Composite's average of 1.42%.
Can GWRS Sustain Dividend Hikes?
Global Water Resources distributes more than 1 billion gallons of recycled water annually and has recycled over 15.9 billion gallons since 2004. The company is well-known for implementing Total Water Management (TWM). TWM is a holistic approach to water management that allows for intelligent management programs, including remote metering systems and other cutting-edge technologies, rate structures and incentives that deliver real energy savings.
The company has grown through its investments in new initiatives, acquisitions and organic expansion, which has led to exceptional performance and cash flow.
GWRS expects to increase its long-term investments in existing utilities to improve revenues, reduce expenses and build a rate base to provide safe, reliable services. During the third quarter of 2023, the company invested $4.9 million in infrastructure projects to support existing utilities and continued growth.
The improving economic condition in Arizona resulted in a growing customer base and fresh demand for GWRS’ services. The company invested $49.7 billion of capital in Arizona during 2020-2022, which implies an increase of 588% over the preceding three years.
GWRS’ growth prospects and ability to further enhance its performance indicate that management will have enough funds to sustain its shareholder-friendly initiatives in the future.
Legacy of Dividend Payment
Companies involved in utility services generally have stable operations and earnings. Consistent performance, regulated returns and the ability to generate cash flows allow utilities to reward shareholders with regular dividends.
In the past few months, Spire Inc. (SR - Free Report) , IDACORP Inc. (IDA - Free Report) and Pinnacle West Capital Corp. (PNW - Free Report) have raised their quarterly dividend rate by 4.9%, 5.1% and 1.7%, respectively.
The Zacks Consensus Estimate for Spire’s fiscal 2024 earnings is pegged at $4.35 per share, implying an increase of 1.2% in the past 60 days. SR’s current dividend yield is 4.72%.
The Zacks Consensus Estimate for IDACORP’s 2023 earnings is pinned at $5.12 per share, implying an increase of 1.6% in the past 60 days. IDA’s current dividend yield is 3.44%.
The Zacks Consensus Estimate for Pinnacle West Capital’s 2023 earnings is pegged at $4.24 per share, implying an increase of 1.4% in the past 60 days. PNW’s current dividend yield is 4.7%.
Price Performance
In the past six months, GWRS’ shares have risen 0.8% against the industry’s average decline of 40.8%.
Image Source: Zacks Investment Research
Zacks Rank
Global Water Resources currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.