Artesian Resources: Steady Drip Of Dividends

Seeking AlphaDividend Ideas | Utilities Artesian Resources: Steady Drip Of DividendsOct. 27, 2020 2:07 PM ET|| About: Artesian Resources Corporation (ARTNA), Includes: AWK, AWR, CWT, GWRS, MSEX, MSEXP, SJW, WTRG, YORWby: Dividend PowerDividend Power Long-term horizon, Dividend Growth Investing, Growth, Long OnlyDividend Power.cls-1{fill:#024999;}SummaryArtesian Resources is a Dividend Champion having raised the dividend for 28 consecutive years.
The water utility is growing organically and through acquisitions.
Artesian has the highest yield and lowest earnings multiple of its water utility peers.
The stock also has low beta meaning it is not correlated to the broader market.
Artesian Resources Corporation (ARTNA) is probably little known to most dividend growth investors. But it should be due to the steady drip of dividends the water utility generates. The company is a Dividend Champion having raised the annual dividend for 28 consecutive years. The stock has shown up on my Dividend Power ranking model as the highest-ranked water utility. In addition, Artesian has the highest dividend yield of about 2.8% at the moment compared to other water utilities. The stock price is still down about -1.3% year-to-date, and the stock is also trading below its 52-week high and all-time high.
In fact, the stock price has trended down since late-2017. Artesian Resources is not trading at a very discounted earnings multiple, but it is trading below the valuation of the S&P 500 and water utility peers. On the negative side, the stock is a micro-cap and thinly traded, and it is still controlled by the founding family. That said, I think the risks are small considering the long operating history and regulated aspect of water utilities. I view the stock as a long-term buy.
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Overview of Artesian Resources
Artesian Resources traces its founding back to 1905. The company operates as a holding company providing water and wastewater services on the... Read more