RGC Resources Inc. Announces Quarterly Dividend of $0.21 (NASDAQ:RGCO)

Key Points

• RGC Resources Inc. declared a quarterly dividend of $0.21, with stockholders of record on October 17 receiving payment on November 3, representing a dividend yield of 3.7%.
• The company has a payout ratio of 64.3%, indicating that earnings sufficiently cover the dividend, with analysts projecting earnings of $1.29 per share next year.
• RGC Resources recently reported $0.05 earnings per share for the last quarter, exceeding expectations, but faced a downgrade from a "buy" to a "hold" rating by Wall Street analysts.

RGC Resources Inc. (NASDAQ:RGCO - Get Free Report) declared a quarterly dividend on Monday, September 29th, RTT News reports. Stockholders of record on Friday, October 17th will be paid a dividend of 0.2075 per share by the energy company on Monday, November 3rd. This represents a c) dividend on an annualized basis and a dividend yield of 3.7%.

RGC Resources has a payout ratio of 64.3% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect RGC Resources to earn $1.29 per share next year, which means the company should continue to be able to cover its $0.83 annual dividend with an expected future payout ratio of 64.3%.

RGC Resources Trading Down 2.0%

RGCO stock traded down $0.45 during midday trading on Monday, hitting $22.27. 7,660 shares of the company's stock were exchanged, compared to its average volume of 14,827. The stock's fifty day moving average price is $21.82 and its 200-day moving average price is $21.53. RGC Resources has a one year low of $19.06 and a one year high of $24.20. The company has a market cap of $230.05 million, a PE ratio of 17.00 and a beta of 0.48. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.66 and a current ratio of 1.04.

RGC Resources (NASDAQ:RGCO - Get Free Report) last released its earnings results on Monday, August 11th. The energy company reported $0.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. RGC Resources had a return on equity of 12.01% and a net margin of 14.48%.The business had revenue of $17.27 million for the quarter, compared to the consensus estimate of $15.00 million. Research analysts predict that RGC Resources will post 1.23 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Separately, Wall Street Zen downgraded shares of RGC Resources from a "buy" rating to a "hold" rating in a report on Saturday, August 16th.

About RGC Resources

RGC Resources, Inc, through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,179 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates six metering stations.

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