Why Unitil (UTL) is a Top Dividend Stock for Your Portfolio

Company Overview - Unitil (UTL) is a utility company headquartered in Hampton, which has experienced a price change of 8.36% this year [3] - The company currently pays a dividend of $0.45 per share, resulting in a dividend yield of 3.07%, which is higher than the Utility - Electric Power industry's yield of 3.05% and the S&P 500's yield of 1.69% [3] Dividend Performance - Unitil's annualized dividend of $1.80 has increased by 5.9% from the previous year [4] - Over the past five years, Unitil has raised its dividend five times, achieving an average annual increase of 3.51% [4] - The current payout ratio for Unitil is 58%, indicating that the company pays out 58% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $3.08 per share, reflecting a year-over-year earnings growth rate of 3.70% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - It is noted that high-yielding stocks may face challenges during periods of rising interest rates, yet UTL is considered a compelling investment opportunity due to its strong dividend profile [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]