WALL, N.J. - New Jersey Resources Corporation (NYSE:NJR) announced a 7.1% increase in its quarterly dividend, raising the amount to $0.45 per share, up from the previous $0.42. This change is set to take effect with the dividend payable on October 1, 2024, to shareholders of record as of September 23, 2024. The increase elevates the annual dividend rate to $1.80 per share.
The decision by NJR's board of directors to boost the dividend continues the company's long-standing practice of returning value to its shareholders. Since its establishment in 1952, NJR has consistently paid quarterly dividends and has a history of increasing its dividend annually for the past 29 years.
Steve Westhoven, President and CEO of NJR, commented on the dividend increase, highlighting it as a reflection of the board's confidence in the company's financial stability and its long-term growth strategy. He emphasized NJR's commitment to delivering sustainable returns and supporting its stakeholders.
NJR, a Fortune 1000 entity, operates through its subsidiaries to provide a range of energy services. These include natural gas transportation and distribution through New Jersey Natural Gas, clean energy solutions from Clean Energy Ventures, and various services from Energy Services, Storage and Transportation, and Home Services divisions. The company is focused on promoting energy conservation and efficiency to its customers in New Jersey.
The information for this news article is based on a press release statement from New Jersey Resources Corporation.
In other recent news, New Jersey Resources Corporation has reported strong performance in its third fiscal quarter of 2024, with an anticipation to meet its Net Financial Earnings Per Share (NFEPS) guidance of $2.85 to $3. The company's Clean Energy Ventures is witnessing growth, while its utility business, projected to contribute over 60% to NFEPS, remains a focal point. In addition, NJR has made amendments to its credit agreements, reducing its revolving credit facility and extending the maturity date.
The company plans to invest $1.2 billion to $1.5 billion across the company over the next two years. Cash flow from operations is expected to be between $420 million and $450 million for fiscal 2024. While solar pricing is expected to contribute minimally to earnings for the year, NJR maintains a robust liquidity position and a healthy adjusted funds from operations to adjusted debt ratio.
Finally, NJR is exploring expansion opportunities for its S&T assets at Leaf River and is experiencing customer growth driven by new construction and conversions from other energy sources. These are among the recent developments at NJR.
InvestingPro Insights
New Jersey Resources Corporation's (NYSE:NJR) recent announcement of a dividend increase is a testament to its impressive track record of dividend growth. An InvestingPro Tip highlights that NJR has not only raised its dividend for 28 consecutive years but has maintained dividend payments for 54 consecutive years. This consistency reflects the company's commitment to shareholder returns and financial resilience.
In terms of stock performance, NJR has been trading near its 52-week high, with a price that's 97.09% of the peak, according to recent InvestingPro Data. This indicates a strong market confidence in the company. Additionally, NJR's price-to-earnings (P/E) ratio stands at 19.16, suggesting a valuation that investors may find attractive given the company's stable earnings history.
InvestingPro Tips also reveal that analysts are optimistic about the company's future, with three analysts having revised their earnings upwards for the upcoming period. This could signal anticipated growth or a positive outlook for NJR's operations. For those interested in further insights, there are additional InvestingPro Tips available, offering a deeper dive into NJR's financial and operational performance.
Lastly, the dividend yield as of late 2024 is at 3.58%, coupled with a dividend growth of 7.69% over the last twelve months. These figures underscore NJR's appeal to income-focused investors looking for steady and growing returns on their investments. The company's next earnings date is set for November 19, 2024, which will provide shareholders and potential investors with further information on its financial trajectory.
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