Why Unitil (UTL) is a Great Dividend Stock Right Now

Company Overview - Unitil (UTL) is a utility stock headquartered in Hampton, which has experienced a price change of 13.54% this year [3] - The company currently pays a dividend of $0.43 per share, resulting in a dividend yield of 2.85%, which is lower than the Utility - Electric Power industry's yield of 3.24% and the S&P 500's yield of 1.52% [3] Dividend Performance - Unitil's annualized dividend is $1.70, reflecting a 4.9% increase from the previous year [4] - Over the past five years, Unitil has raised its dividend five times, achieving an average annual increase of 2.77% [4] - The company's current payout ratio is 56%, indicating that it distributes 56% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2024, the Zacks Consensus Estimate projects earnings of $2.92 per share, which corresponds to a year-over-year earnings growth rate of 3.55% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - High-growth firms or tech start-ups typically do not provide dividends, while larger, established companies are often viewed as better dividend options [7] - UTL is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]