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Why Artesian Resources (ARTNA) is a Great Dividend Stock Right Now
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Newark, Artesian Resources (ARTNA - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 6.8%. The water resource management company is paying out a dividend of $0.31 per share at the moment, with a dividend yield of 3.64% compared to the Utility - Water Supply industry's yield of 2.57% and the S&P 500's yield of 1.52%.
Looking at dividend growth, the company's current annualized dividend of $1.23 is up 4.1% from last year. Over the last 5 years, Artesian Resources has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Artesian Resources's current payout ratio is 58%, meaning it paid out 58% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, ARTNA expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $2.16 per share, with earnings expected to increase 9.09% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that ARTNA is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
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Why Artesian Resources (ARTNA) is a Great Dividend Stock Right Now
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Newark, Artesian Resources (ARTNA - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 6.8%. The water resource management company is paying out a dividend of $0.31 per share at the moment, with a dividend yield of 3.64% compared to the Utility - Water Supply industry's yield of 2.57% and the S&P 500's yield of 1.52%.
Looking at dividend growth, the company's current annualized dividend of $1.23 is up 4.1% from last year. Over the last 5 years, Artesian Resources has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.17%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Artesian Resources's current payout ratio is 58%, meaning it paid out 58% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, ARTNA expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $2.16 per share, with earnings expected to increase 9.09% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that ARTNA is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).