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New Jersey Resources Boosts Shareholder Value, Hikes Dividend by 5.6%

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Key Takeaways

  • New Jersey Resources approved a 5.6% dividend hike, lifting the annual dividend rate to $1.90 per share.
  • The company has raised dividends annually for the past 30 years.
  • NJR intends to invest in the range of $650-$770 million in fiscal 2025 to strengthen infrastructure

New Jersey Resources Corporation (NJR - Free Report) recently announced that its board of directors has approved a 5.6% increase in its quarterly dividend rate. Following the board's approval, the company’s share price rose 0.6% to reach $47.17 on Sept. 15, 2025.

The company’s revised quarterly dividend will now be 47.5 cents, payable on Oct. 1, 2025, to shareholders of record at the close of the business on Sept. 22, 2025. 

New Jersey Resources has been successful in paying dividends on a steady basis since its inception in 1952, driven by its solid financial position and infrastructural development. The recent increase represents the company’s 30th consecutive annual dividend hike. 

Following this hike, NJR’s new annualized dividend rate is $1.90 per share, resulting in an annualized dividend yield of 4.03%, which is better than the S&P 500 composite’s average of 1.50%.

Can New Jersey Resources Sustain Its Dividend Momentum?

New Jersey Resources follows a systematic capital investment strategy aimed at modernizing its infrastructure, expanding clean energy programs and providing safe, reliable services to its growing customer base. The company is committed to delivering 7-9% long-term net financial earnings per share growth annually.

The company intends to invest in the range of $650-$770 million and $655-$835 million in fiscal 2025 and 2026, respectively. These investments will enable the company to create strong cash flows, allowing it to provide attractive returns for its shareholders in the form of healthy dividend payouts.

NJR’s principal subsidiary, New Jersey Natural Gas (“NJNG”), manages and operates natural gas transportation and distribution infrastructure to serve its customers. At the end of the fiscal third quarter of 2025, NJNG serves 588,000 customers, higher than the 583,000 served at the end of fiscal 2024. NJNG’s service area is undergoing notable development, fueled by strong customer demand and an increasing trend toward year-round living. So, it is expected that customer addition will continue at NJNG, resulting in higher demand for NJR’s services.

NJR, through its Clean Energy Ventures, owns and operates solar projects around 449 megawatts (MW) of commercial solar capacity. The company is increasing its renewable power generation capacity to meet the rising demand for clean energy. These positive initiatives will further increase NJR’s financial flexibility and enable it to pay dividends to shareholders.

Other Utility Companies’ Recent Dividend Hikes

Companies involved in utility services generally have stable operations and earnings. Their consistent performance, regulated returns and strong cash flow generation provide a solid foundation to reward shareholders through regular dividend hikes. A few utilities, among others, have been mentioned below that have decided to share more profits with their shareholders in the form of dividend hikes. 

In June 2025, Consolidated Water Co. Ltd. (CWCO - Free Report) announced that its board of directors approved a 27.3% hike in its quarterly dividend to 14 cents per share.

CWCO delivered an average earnings surprise of 40.05% in the last four quarters. The Zacks Consensus Estimate for 2025 sales is pegged at $133.3 million, which implies a decline of 0.5%.

In April 2025, Southern Company (SO - Free Report) announced that its board of directors approved a 2.8% hike in its quarterly dividend to 74 cents per share.

SO boasts a long-term (three to five years) earnings growth rate of 6.8%. The Zacks Consensus Estimate for 2025 sales is pinned at $28.37 billion, which calls for an increase of 6.2%.

In February 2025, Xcel Energy Inc. (XEL - Free Report) announced that its board of directors approved a 4.1% hike in its quarterly dividend to 57 cents per share.

XEL boasts a long-term earnings growth rate of 7.8%. The Zacks Consensus Estimate for 2025 sales is pegged at $14.85 billion, which calls for an increase of 10.5%.

NJR Stock Price Movement

In the past month, NJR shares have rallied 1.3% compared with the industry’s growth of 2.1%.

Zacks Investment Research
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NJR’s Zacks Rank

New Jersey Resources currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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