Global Water Resources, Inc. (NASDAQ:GWRS) Plans $0.03 Monthly Dividend

Key Points

• Dividend announced: Global Water Resources declared a monthly dividend of $0.0253 per share (≈$0.30 annual), with shareholders of record on April 16 and payment on April 30, implying a ~4.0% yield.
• Dividend sustainability risk: The company has a 107.1% payout ratio, meaning the dividend is not covered by current earnings and the firm is relying on its balance sheet; analysts forecast ≈$0.30 EPS next year, which would leave little to no cushion.
• Recent financials and valuation: GWRS posted an EPS miss last quarter (‑$0.01 vs. $0.04 expected) and trades at a high PE of 75.9 with a market cap around $218 million.

Global Water Resources, Inc. (NASDAQ:GWRS - Get Free Report) announced a monthly dividend on Tuesday, March 31st. Shareholders of record on Thursday, April 16th will be given a dividend of 0.0253 per share by the utilities provider on Thursday, April 30th. This represents a c) dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Thursday, April 16th.

Global Water Resources has decreased its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 8 years. Global Water Resources has a payout ratio of 107.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Global Water Resources to earn $0.30 per share next year, which means the company may not be able to cover its $0.30 annual dividend with an expected future payout ratio of 100.0%.

Global Water Resources Price Performance

Shares of NASDAQ:GWRS opened at $7.59 on Wednesday. The firm's 50 day moving average price is $8.38 and its 200-day moving average price is $9.01. The company has a quick ratio of 0.76, a current ratio of 0.76 and a debt-to-equity ratio of 1.54. The stock has a market capitalization of $218.29 million, a PE ratio of 75.91 and a beta of 0.96. Global Water Resources has a twelve month low of $7.12 and a twelve month high of $11.17.

Global Water Resources (NASDAQ:GWRS - Get Free Report) last announced its earnings results on Wednesday, March 4th. The utilities provider reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.04 by ($0.05). The business had revenue of $13.54 million for the quarter, compared to analysts' expectations of $13.73 million. Global Water Resources had a net margin of 5.30% and a return on equity of 4.73%. Equities research analysts expect that Global Water Resources will post 0.28 EPS for the current year.

About Global Water Resources

Global Water Resources, Inc NASDAQ: GWRS is a publicly traded holding company based in Scottsdale, Arizona, specializing in the ownership and management of water and wastewater utilities. The company provides critical potable water delivery, wastewater collection and treatment, and reclaimed water services to residential, commercial and industrial customers across select communities in Central and Southern Arizona.

The company operates multiple regulated utility systems, serving communities such as Anthem, Biltmore, Florence and San Tan Valley.

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