Chesapeake Utilities (CPK) Could Be a Great Choice

Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, which can come from various sources including dividends [1][2] Company Overview: Chesapeake Utilities - Chesapeake Utilities (CPK) is a utility stock headquartered in Dover, with a year-to-date price change of 4.52% [3] - The company currently pays a dividend of $0.64 per share, resulting in a dividend yield of 2.02%, which is lower than the industry average of 3.36% and the S&P 500's yield of 1.59% [3] - The annualized dividend of $2.56 represents a 2% increase from the previous year, with a five-year average annual increase of 9.63% [4] Dividend and Earnings Growth - Chesapeake Utilities has increased its dividend five times over the past five years, with a current payout ratio of 46%, indicating that 46% of its trailing 12-month earnings per share (EPS) is paid out as dividends [4] - The Zacks Consensus Estimate for the company's earnings in 2025 is $6.25 per share, reflecting a year-over-year growth rate of 15.96% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages, although not all companies offer dividends [6] - High-yielding stocks may face challenges during periods of rising interest rates, but Chesapeake Utilities is considered a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]