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Reasons to Add Middlesex Water Stock to Your Portfolio Right Away

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Middlesex Water Company’s (MSEX - Free Report) strategic investments should help support future growth and expand its customer base. The company benefits from acquisitions by expanding its operations. Given its growth opportunities, Middlesex Water makes for a solid investment option in the utility sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment option at the moment.

MSEX’s Growth Projections & Surprise History

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has moved up 4.5% in the past 90 days to $2.53.

The Zacks Consensus Estimate for 2025 revenues is pinned at $200 million, implying a year-over-year increase of 4.2%.

MSEX’s long-term (three to five years) earnings growth rate is 6.1%. The company delivered an average earnings surprise of 11% for the trailing four quarters.

Debt Position of MSEX

Middlesex Water’s total debt to capital is 44.34%, better than the industry’s average of 56.04%.

The time-to-interest earned ratio at the end of the first quarter of 2025 was 4.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

MSEX’s Dividend History

Middlesex Water been consistently paying dividends and increasing its shareholders’ value. The company has raised its dividend for 52 consecutive years. Currently, its quarterly dividend is 34 cents per share, resulting in an annualized dividend of $1.36. Its current dividend yield is 2.37%, better than the Zacks S&P 500 composite’s 1.25%.  

MSEX Gains From Strategic Investments & Acquisitions

Middlesex Water plans to invest approximately $387 million in its water and wastewater infrastructure over the next three years. This investment is aimed at upgrading and enhancing the reliability of the company's existing infrastructure to better serve its customers.

The company aims to expand its operations through acquisitions. In April 2025, MSEX’s unit Tidewater Utilities, Inc. acquired the water assets of the Town of Ocean View (“TOV”) in Sussex County, DE, for $4.6 million. The acquisition of TOV’s assets will expand Middlesex Water’s operation in Delaware and add 900 customers to its existing base.

MSEX’s Stock Price Performance

Year to date, the company has returned 9.1% compared with the sector’s 8.1% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same sector are Artesian Resources (ARTNA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, and Evergy (EVRG - Free Report) and Exelon Corporation (EXC - Free Report) , both holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ARTNA’s 2025 EPS is pegged at $2.16, implying a year-over-year improvement of 9.1%. The company delivered an average earnings surprise of 18.6% in the last four quarters.

EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.03, indicating a year-over-year improvement of 5.8%.

EXC’s long-term earnings growth rate is 6.42%. The company delivered an average earnings surprise of 10.1% for the trailing four quarters.

 

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