RGC Resources Inc. (NASDAQ:RGCO) Shareholders to Receive $0.22 Quarterly Dividend

Key Points

• RGC Resources declared a quarterly dividend of $0.2175 per share, payable November 2 to shareholders of record on October 16. The dividend annualizes to $0.87 per share and yields approximately 4.0%.
• The company has increased its dividend for 22 consecutive years, with a 67.4% payout ratio suggesting coverage by earnings.
• RGC Resources recently reported quarterly earnings of $0.05 per share and revenue of $17.11 million, both slightly below analyst expectations; insiders and institutional investors have nonetheless added to their positions.

RGC Resources Inc. (NASDAQ:RGCO - Get Free Report) announced a quarterly dividend on Monday, September 28th. Shareholders of record on Friday, October 16th will be given a dividend of $0.2175 per share by the energy company on Monday, November 2nd. This represents a $0.87 annualized dividend and a yield of 4.0%. The ex-dividend date is Friday, October 16th.

RGC Resources has increased its dividend by an average of 0.0%per year over the last three years and has raised its dividend every year for the last 22 years. RGC Resources has a payout ratio of 67.4% indicating that its dividend is sufficiently covered by earnings.

RGC Resources Price Performance

NASDAQ:RGCO opened at $21.60 on Tuesday. The firm's fifty day moving average is $21.74 and its two-hundred day moving average is $22.54. The firm has a market cap of $225.07 million, a price-to-earnings ratio of 16.12 and a beta of 0.52. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.67 and a current ratio of 0.94. RGC Resources has a one year low of $20.55 and a one year high of $27.99.

RGC Resources (NASDAQ:RGCO - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The energy company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.06 by ($0.01). The company had revenue of $17.11 million for the quarter, compared to analysts' expectations of $18.19 million. RGC Resources had a net margin of 13.05% and a return on equity of 11.73%.

Insiders Place Their Bets

In other news, Director John Williamson, III acquired 2,500 shares of the firm's stock in a transaction on Wednesday, September 23rd. The stock was acquired at an average price of $20.94 per share, for a total transaction of $52,350.00. Following the completion of the transaction, the director owned 182,431 shares in the company, valued at approximately $3,820,105.14. The trade was a 1.39% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have acquired a total of 8,334 shares of company stock valued at $175,772 over the last three months. 7.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On RGC Resources

A number of institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in RGC Resources in the 2nd quarter worth about $10,213,000. Gamco Investors INC. ET AL grew its holdings in RGC Resources by 0.9% in the first quarter. Gamco Investors INC. ET AL now owns 416,900 shares of the energy company's stock valued at $9,193,000 after purchasing an additional 3,600 shares during the period. Gabelli Funds LLC grew its holdings in RGC Resources by 0.6% in the first quarter. Gabelli Funds LLC now owns 230,300 shares of the energy company's stock valued at $5,078,000 after purchasing an additional 1,300 shares during the period. Ancora Advisors LLC purchased a new stake in shares of RGC Resources in the second quarter valued at approximately $3,272,000. Finally, Dimensional Fund Advisors LP increased its position in shares of RGC Resources by 2.6% in the first quarter. Dimensional Fund Advisors LP now owns 126,931 shares of the energy company's stock valued at $2,799,000 after buying an additional 3,175 shares in the last quarter. 35.77% of the stock is currently owned by institutional investors and hedge funds.

RGC Resources Company Profile

RGC Resources, Inc is a holding company whose principal subsidiary, Roanoke Gas Company, provides regulated natural gas distribution services in southwestern Virginia. The company delivers natural gas to residential, commercial and industrial customers through a local distribution network.

Roanoke Gas serves communities in and around the Roanoke Valley, including the cities of Roanoke, Salem and Vinton, as well as portions of surrounding counties. Its activities include operating and maintaining natural gas pipelines, providing customer connections and delivering gas for heating, water heating, cooking and other commercial and industrial uses.

RGC Resources traces its operating history to Roanoke Gas Company, which was established in the early twentieth century.

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