SJIJ - RGC Resources: Lack Of Forward Growth A Concern

• RGC Resources is a fairly small Virginian utility that boasts incredibly stable YOY cash flows and a growing dividend.
• The company is able to easily afford its dividend, which means that it can certainly continue to pay its 3.41% yield.
• The company is more conservatively financed than its peers, which is always an advantage.
• The company has a history of delivering fairly solid EPS growth but unfortunately, it does not appear likely to be able to continue this track record.
• The valuation appears reasonable at the current level.

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