Essential Utilities, Inc. (WTRG), formerly Aqua America (WTR) will raise its quarterly dividend by 7 percent to $0.2507 per share in 2020. This follows similar dividend increases by the water utility in the last couple of years.

The next dividend is payable September 1, 2020 to all shareholders of record on August 14, 2020. A new annualized dividend rate of $1.0028 per share yields 2.2% at a stock price of $45.

In the company's press release dated August 4, 2020, the company mentions that this marks the 30th dividend increase in the past 29 years, and the company has paid a consecutive quarterly cash dividend for more than 75 years. The board’s stated targeted dividend payout ratio continues to be up to 65% of earnings from operations.

“Our long history of 75 years of consecutive quarterly cash dividends demonstrates the company’s commitment to consistently delivering strong results,” said Essential Chairman and CEO Christopher Franklin. “The Board’s decision to increase the quarterly dividend for 29 consecutive years reflects our confidence in the company’s continued ability to deliver long-term value to our customers, communities and shareholders. Our ability to grow the dividend on top of the 5 to 7% earnings growth guidance presents a robust total shareholder return profile.”

The average annual dividend hike is 7.1 percent over the last five years and Essential Utilities currently pays an estimated annual dividend amount of $246 million to shareholders.

Essential Utilities, Inc., formerly Aqua America, Inc., is the holding company for regulated utilities providing water or wastewater services to people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. In addition, the company’s market-based activities are conducted through Aqua Infrastructure, LLC and Aqua Resources, Inc. Aqua Infrastructure provides non-utility raw water supply services for firms in the natural gas drilling industry. Aqua Resources provides water service through operating and maintenance contracts with a municipal authority and another party close to our utility companies’ service territory; and offers, through a third-party, water and sewer line protection solutions and repair services to households. The company has paid a dividend to shareholders every year since at least 1945.