Why Essential Utilities (WTRG) is a Great Dividend Stock Right Now

Company Overview - Essential Utilities (WTRG) is headquartered in Bryn Mawr and has experienced a price change of 7.57% this year [3] - The company currently pays a dividend of $0.33 per share, resulting in a dividend yield of 3.51%, which is higher than the Utility - Water Supply industry's yield of 2.56% and the S&P 500's yield of 1.48% [3] Dividend Performance - The current annualized dividend of Essential Utilities is $1.37, reflecting an 8.3% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend 5 times, achieving an average annual increase of 6.53% [4] - The current payout ratio is 56%, indicating that the company paid out 56% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - The Zacks Consensus Estimate for earnings in 2025 is $2.11 per share, which represents a year-over-year earnings growth rate of 7.11% [5] - Future dividend growth will depend on earnings growth and the payout ratio [4] Investment Appeal - Essential Utilities is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6] - The company is positioned well for income investors, especially in comparison to high-growth firms that typically do not offer dividends [6]