Group 1 - The stock is characterized by high safety and promising future prospects, despite facing regulatory headwinds that have negatively impacted its performance [1] - The stock is considered relatively cheap for a utility company, offering a yield of 4% [1] Group 2 - The analyst has a background in accounting and has developed a comprehensive approach to equity research, focusing on fundamental analysis while also considering other perspectives [2] - The investment research primarily targets equities in the utilities, consumer discretionary, consumer staples, REITs, and materials sectors across the Americas [2] - The analyst aims to provide data-driven analysis to assist readers in making informed investment decisions, with a mid-term return perspective of 1 to 3 years [2]

Core Viewpoint - New Jersey Resources (NJR) is anticipated to report a year-over-year decline in earnings due to lower revenues, which could significantly affect its stock price depending on how actual results compare to consensus estimates [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for November 19, and if the results exceed expectations, the stock may rise; conversely, missing estimates could lead to a decline [2]. - The consensus estimate for NJR's quarterly earnings is $0.16 per share, reflecting a year-over-year decrease of 82%, with revenues projected at $303.14 million, down 23.4% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.33% higher, indicating a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for NJR is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +8.51%, suggesting a likelihood of beating the consensus EPS estimate [12]. Earnings Surprise History - NJR has a history of beating consensus EPS estimates, having surpassed expectations in three out of the last four quarters, including a notable surprise of +200% in the last reported quarter [13][14]. Industry Context - In comparison, Spire (SR), another company in the Zacks Utility - Gas Distribution industry, is expected to report a loss of $0.46 per share, which represents a year-over-year increase of 14.8%, with revenues projected at $307.96 million, up 4.8% from the previous year [18]. - Spire's consensus EPS estimate has been revised 0.3% higher, but a lower Most Accurate Estimate results in an Earnings ESP of -23.72%, complicating predictions of an earnings beat [19].

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Points - New Jersey Resources Corporation's board of directors declared a quarterly dividend of $0.475 per share [1] - The dividend is scheduled to be paid on January 2, 2026, to shareholders of record as of December 12, 2025 [1] - NJR has consistently paid quarterly dividends since its inception in 1952 and has increased its dividend every year for the last 30 years [1] Company Overview - New Jersey Resources Corporation is listed on the NYSE under the ticker NJR [1]

Core Insights - New Jersey Resources Corporation (NJR) is recognized as a strong contender for the Best Dividend Stocks and has achieved its 30th consecutive year of dividend growth [1][3] Company Overview - NJR operates a mix of regulated and unregulated energy businesses, primarily through New Jersey Natural Gas, serving approximately 588,000 customers in affluent and rapidly growing counties [2] - The company also engages in wholesale and retail gas marketing, solar project development, and owns natural gas storage and transportation assets [2] Dividend Information - On September 10, NJR announced a 5.6% increase in its quarterly dividend, raising it to $0.475 per share, resulting in a dividend yield of 4.05% as of October 2 [3] - NJR has maintained a consistent dividend payment since 1952, highlighting its reliability as a dividend champion [3] Future Outlook - The company's future growth is contingent on favorable regulatory decisions and the expansion of its utility business, alongside investments in clean energy projects [4] - Changes in state and federal energy policies are expected to significantly influence the company's performance [4]

Industry Overview - Natural gas distribution companies transport natural gas from production regions to consumers across the U.S., with a significant underground pipeline network of 2.6 million miles [2] - The shale revolution has increased natural gas production, leading to higher demand due to its clean-burning nature [2] - The U.S. has 3,353 trillion cubic feet of natural gas, and the industry faces challenges such as aging infrastructure and rising investment costs due to interest rate hikes [2] Future Outlook - The U.S. Energy Information Administration (EIA) projects that domestic dry natural gas production will increase in 2025, particularly in the Permian Basin [3] - EIA expects U.S. liquefied natural gas (LNG) export volumes to rise by 25% year-over-year in 2025 and by 6.7% in 2026, highlighting the importance of gas pipelines for transportation to export terminals [3] Interest Rate Impact - The Federal Reserve's recent interest rate cut of 100 basis points to a range of 4.25-4.5% is expected to benefit capital-intensive utilities, allowing for easier access to financing for infrastructure upgrades [4] - Further rate cuts are anticipated in 2026, which would positively impact utility operators planning large investments [4] Competitive Landscape - Natural gas faces increasing competition from renewable energy sources, which are becoming cheaper and more reliable due to advancements in technology and battery storage [5] - The rise of on-site generation reduces reliance on long-distance infrastructure, posing economic risks for new pipeline investments [5] Industry Performance - The Zacks Utility Gas Distribution industry currently ranks 190, placing it in the bottom 22% of the 245 Zacks industries, indicating weak near-term prospects [6] - Earnings estimates for the industry have decreased by 20.9% since September 31, 2024, reflecting a negative outlook [7] Stock Market Performance - Over the past year, the Gas Distribution industry has gained 6.5%, outperforming the Utility sector's growth of 5.4% but lagging behind the Zacks S&P 500 composite's 19.9% increase [9] Valuation Metrics - The industry is trading at a trailing 12-month EV/EBITDA ratio of 11.28X, compared to 18.35X for the Zacks S&P Composite 500 and 15.06X for the sector [12] - Historical trading ranges for the industry have been between 9.55X and 12.4X, with a median of 10.9X over the past five years [12] Company Highlights - **Sempra Energy (SRE)**: Plans to invest $56 billion from 2025-2029, with a current dividend yield of 3.09% and long-term earnings growth projected at 7.01% [18][19] - **Atmos Energy (ATO)**: Invested $2.94 billion in fiscal 2024 and plans to invest $3.7 billion in fiscal 2025, with a current dividend yield of 2.1% and long-term growth of 7.32% [22][23] - **New Jersey Resources (NJR)**: Aims to invest $650-$770 million in fiscal 2025 and $655-$835 million in fiscal 2026, with a current dividend yield of 3.82% [26][27] - **ONE Gas Inc. (OGS)**: Plans to invest $4 billion through 2029, with a current dividend yield of 3.53% and long-term growth projected at 5.56% [30][31]

Core Insights - New Jersey Resources Corporation (NJR) has approved a 5.6% increase in its quarterly dividend rate, raising it to 47.5 cents per share, effective October 1, 2025 [1][9] - This marks the company's 30th consecutive annual dividend increase, with the new annualized dividend rate set at $1.90 per share, resulting in an annualized dividend yield of 4.03%, significantly higher than the S&P 500 average of 1.50% [2][9] Financial Strategy and Growth - NJR follows a systematic capital investment strategy focused on modernizing infrastructure and expanding clean energy programs, aiming for 7-9% long-term net financial earnings per share growth annually [3] - The company plans to invest between $650 million and $770 million in fiscal 2025 and between $655 million and $835 million in fiscal 2026, which is expected to generate strong cash flows for shareholder returns [4] Customer Base and Demand - NJR's principal subsidiary, New Jersey Natural Gas (NJNG), serves 588,000 customers as of the end of fiscal Q3 2025, an increase from 583,000 at the end of fiscal 2024, indicating strong customer demand and growth potential [5] - The service area of NJNG is experiencing notable development, driven by an increasing trend toward year-round living, which is expected to sustain customer additions and demand for NJR's services [5] Renewable Energy Initiatives - NJR, through its Clean Energy Ventures, operates solar projects with a total capacity of 449 megawatts (MW) and is increasing its renewable power generation capacity to meet rising clean energy demand [6] Industry Context - Other utility companies have also announced dividend hikes, reflecting the stable operations and earnings typical in the utility sector, which supports regular dividend increases [7][8]

Core Viewpoint - New Jersey Resources (NJR) is positioned as a strong investment option in the Zacks Utility Gas Distribution industry due to its infrastructure investments and growing customer base [1] NJR's Growth Outlook & Surprise History - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 1.9% to $3.28 over the past 60 days [2] - The Zacks Consensus Estimate for fiscal 2025 sales is projected at $1.98 billion, indicating a year-over-year increase of 10% [2] - NJR has consistently surpassed expectations in the last four reported quarters, achieving an average earnings surprise of 54.96% [2] NJR's Return on Equity - NJR's return on equity (ROE) stands at 17.08%, significantly higher than the industry average of 9.08%, demonstrating effective fund utilization [3][9] NJR's Strategic Spending & Service Reach - NJR plans to invest between $650 million and $770 million in capital expenditures for fiscal 2025, and between $655 million and $835 million for fiscal 2026 to enhance infrastructure [4][9] - As of June 30, 2025, NJR provided services to approximately 588,300 customers, an increase from about 583,000 customers as of September 30, 2024 [5] NJR's Return to Shareholders - NJR has a history of increasing shareholder value through regular dividend payments, having paid quarterly dividends since 1952 and raised dividends for 30 consecutive years [6] - On September 10, 2025, NJR's board authorized a quarterly dividend increase to 47.5 cents per share from 45 cents, marking a 5.6% increase and bringing the annualized dividend to $1.90 [7] Overview of NJR's Debt Structure - NJR's total debt to capital ratio is 58.26%, which is better than the sector's average of 59.64% [10] - The time-to-interest earned ratio at the end of the fiscal third quarter of 2025 was 5, indicating the company's strong ability to meet future interest obligations [10] NJR Stock Price Performance - Over the past month, NJR shares have increased by 2.1%, outperforming the sector's growth of 0.1% [11]

Group 1 - The board of directors of New Jersey Resources Corporation has approved an increase in the quarterly dividend rate to $0.475 per share from $0.45 per share [1] - The new quarterly dividend rate will be effective for the dividend payable on October 1, 2025, to shareholders of record on September 22, 2025 [1] - The new annual dividend rate will be $1.90 per share, continuing the company's history of paying quarterly dividends since its inception in 1952 [1]

Group 1 - The article presents New Jersey Resources (NJR) as a stock that is worth buying and holding, indicating a positive outlook on the company's potential [1] - The author emphasizes the belief in the efficiency of financial markets, suggesting that stocks often reflect their true value, but highlights that the best profit opportunities arise from less-followed stocks or those that do not accurately represent market opportunities [1] Group 2 - The author has over 20 years of experience in the financial world, which includes roles as an advisor, teacher, and writer, establishing credibility in the analysis provided [1]