NewJersey Resources Corporation (NYSE:NJR) Plans Dividend Increase - $0.48 Per Share

Key Points

• NewJersey Resources Corporation announced a quarterly dividend increase to $0.48 per share, reflecting a 5.6% rise from the previous dividend of $0.45.
• The company's payout ratio is currently at 57.7%, indicating strong earnings support for the new dividend, with expectations of earning $3.12 per share next year.
• Institutional ownership remains high at 70.98%, with recent adjustments made by several hedge funds and investment firms in their stake in the company.

NewJersey Resources Corporation (NYSE:NJR - Get Free Report) announced a quarterly dividend on Wednesday, September 10th, RTT News reports. Shareholders of record on Monday, September 22nd will be given a dividend of 0.475 per share by the utilities provider on Wednesday, October 1st. This represents a c) dividend on an annualized basis and a yield of 4.1%. This is a 5.6% increase from NewJersey Resources's previous quarterly dividend of $0.45.

NewJersey Resources has a payout ratio of 57.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect NewJersey Resources to earn $3.12 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 57.7%.

NewJersey Resources Trading Up 0.7%

Shares of NJR stock opened at $46.85 on Thursday. The company has a market capitalization of $4.71 billion, a P/E ratio of 11.45 and a beta of 0.67. The company has a current ratio of 0.76, a quick ratio of 0.48 and a debt-to-equity ratio of 1.25. The business's 50 day moving average is $46.49 and its two-hundred day moving average is $46.99. NewJersey Resources has a twelve month low of $43.80 and a twelve month high of $51.94.

NewJersey Resources (NYSE:NJR - Get Free Report) last issued its quarterly earnings results on Monday, August 4th. The utilities provider reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.12. NewJersey Resources had a return on equity of 17.08% and a net margin of 19.64%.The firm had revenue of $298.95 million during the quarter, compared to the consensus estimate of $305.05 million. During the same period last year, the company earned ($0.09) earnings per share. The company's revenue for the quarter was up 8.5% on a year-over-year basis. Equities analysts forecast that NewJersey Resources will post 3.15 EPS for the current year.

Insiders Place Their Bets

In other news, COO Patrick J. Migliaccio sold 1,500 shares of NewJersey Resources stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $44.22, for a total transaction of $66,330.00. Following the completion of the sale, the chief operating officer directly owned 35,690 shares in the company, valued at approximately $1,578,211.80. This trade represents a 4.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.72% of the company's stock.

Institutional Trading of NewJersey Resources

Institutional investors and hedge funds have recently modified their holdings of the business. Crews Bank & Trust acquired a new stake in shares of NewJersey Resources in the first quarter valued at approximately $37,000. Cullen Frost Bankers Inc. lifted its stake in NewJersey Resources by 153.0% in the 2nd quarter. Cullen Frost Bankers Inc. now owns 754 shares of the utilities provider's stock valued at $34,000 after buying an additional 456 shares in the last quarter. Hexagon Capital Partners LLC grew its holdings in NewJersey Resources by 42.0% during the 1st quarter. Hexagon Capital Partners LLC now owns 839 shares of the utilities provider's stock valued at $41,000 after buying an additional 248 shares during the last quarter. Ameriflex Group Inc. acquired a new stake in NewJersey Resources during the 4th quarter valued at $51,000. Finally, EverSource Wealth Advisors LLC increased its position in NewJersey Resources by 259.1% during the second quarter. EverSource Wealth Advisors LLC now owns 1,203 shares of the utilities provider's stock worth $54,000 after buying an additional 868 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

NewJersey Resources Company Profile

New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets.

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