Why Chesapeake Utilities (CPK) is a Great Dividend Stock Right Now

Company Overview - Chesapeake Utilities (CPK) is based in Dover and operates in the Utilities sector, with a year-to-date share price change of -0.19% [3] - The company currently pays a dividend of $0.64 per share, resulting in a dividend yield of 2.11%, which is lower than the Utility - Gas Distribution industry's yield of 3.36% and the S&P 500's yield of 1.54% [3] Dividend Performance - Chesapeake Utilities has an annualized dividend of $2.56, reflecting a 2% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 9.63% [4] - The current payout ratio is 46%, indicating that the company pays out 46% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $6.27 per share, representing a year-over-year growth rate of 16.33% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses rarely offer dividends [7] - Chesapeake Utilities is considered a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]