NewJersey Resources Corporation (NYSE:NJR) Raises Dividend to $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. Stockholders 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) annualized dividend and a dividend yield of 4.1%. The ex-dividend date of this dividend is Monday, September 22nd. 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% meaning its dividend is sufficiently covered by earnings. Equities 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 Down 1.5%

NYSE NJR traded down $0.69 during trading hours on Tuesday, hitting $46.49. The company's stock had a trading volume of 217,803 shares, compared to its average volume of 619,137. NewJersey Resources has a twelve month low of $43.80 and a twelve month high of $51.94. The firm has a market capitalization of $4.67 billion, a P/E ratio of 11.37 and a beta of 0.67. The company has a quick ratio of 0.48, a current ratio of 0.76 and a debt-to-equity ratio of 1.25. The stock has a fifty day moving average of $46.61 and a 200 day moving average of $46.96.

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

Insider Activity at NewJersey Resources

In related news, COO Patrick J. Migliaccio sold 1,500 shares of NewJersey Resources stock in a transaction dated 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 owned 35,690 shares of the company's stock, valued at approximately $1,578,211.80. The trade was a 4.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.72% of the company's stock.

Institutional Trading of NewJersey Resources

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