As a dividend growth investor, I'm always looking for companies that deliver consistent dividend growth, regardless of the operating environment.
One such company that has been on my radar for a few years now is
Essential Utilities: Why I'm (Finally) Opening A Position
Summary
- Those who have followed my work over the years may be aware of the fact that I have wanted to add Essential Utilities to my portfolio for quite a while.
- Essential Utilities' non-GAAP EPS payout ratio is positioned to remain in the low-60% range during 2021, which translates into a very secure dividend with room to grow.
- Essential Utilities didn't mess around in the first quarter, delivering YoY organic revenue growth of 4.8% and 19.5% YoY non-GAAP EPS growth.
- Adding to the case for an investment in Essential Utilities, is the fact that the company's interest coverage ratio was 3.7 in Q1 2021.
- While Essential Utilities is trading at an 8% premium, I believe the stock is positioned to deliver 7.5-8.5% annual total returns even at this premium, which is why I am starting a small position and buying on any weakness.
Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also the inspiration of my pseudonym here on Seeking Alpha.By God's grace, I owe everything to my blog for introducing me to the Seeking Alpha community as an analyst. That's my story and I hope you enjoy my work examining dividend growth stocks and the occasional growth stock!
Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in WTRG over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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