WTRG - Essential Utilities: Why I'm Going To Be Buying More

2024-05-23 07:30:00 ET

Summary

• Over the last several decades, Essential Utilities has proven itself to be one of the premier dividend growth stocks.
• The water utility has several pending water segment rate cases and a $7.2 billion capital spending plan for the next five years to drive growth.
• WTRG also enjoys an A- credit rating from S&P on a stable outlook to finance its capital spending.
• Shares of the water utility could be trading at an 18% discount to fair value.
• WTRG could be poised to generate 40% cumulative total returns through 2026.

As a dividend growth investor, I enjoy investing in businesses that are essential to their customers. This is because such companies tend to deliver predictable earnings growth to shareholders.

Provided that a business also maintains a corporate culture geared at rewarding shareholders, this usually leads to reliable dividend growth as well....

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