2.71% Dividend Yield, 54 Years of Dividend Hikes – The Water Utility With Enduring Income and Stability
A legacy of steady payouts and water reliability
This company has delivered rising dividends for over five decades, cementing its reputation as a reliable income source. Its core business centers on regulated water and wastewater services, ensuring essential supply to thousands of homes and businesses. With predictable demand, recurring contracts, and ongoing infrastructure investment, the company’s operational model is designed for stability and consistent shareholder returns.
Middlesex Water (MSEX)
Financial Score: 87 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.Middlesex Water is a U.S.-based utility providing regulated water and wastewater services in New Jersey, Delaware, and Pennsylvania. The company operates as a mid-sized investor-owned utility, tracing its roots back to 1897 in Woodbridge, New Jersey. Middlesex Water serves over 450,000 people, supporting both residential and commercial customers. Its regulated operations are bolstered by disciplined capital spending and a reputation for operational efficiency.
Dividend foundation and resilient cash flows
The annual dividend is $1.44 per share, yielding 2.71%, with a payout ratio near 60.25%. Middlesex Water has increased its dividend for 54 consecutive years, growing payouts by 35% over the past five years. This streak is supported by robust cash flow from regulated operations, a history of disciplined capital allocation, and a commitment to shareholder returns. The company’s payout is balanced by operational efficiency and the predictability of regulated earnings.
Q3 2025 operational highlights
In the third quarter of 2025, Middlesex Water reported revenue of $54.091 million and net income of $13.958 million, with operating income at $17.703 million. Adjusted EPS for the quarter was $0.77, consistent with prior-year results. The company’s operating cash flow reached $44.134 million, supporting ongoing dividends and capital investment. Year-to-date capital expenditures are at $72 million, with $93 million planned for 2025, focused on water main replacements, meter upgrades, and regulatory compliance projects.
Growth driven by infrastructure and strategic acquisitions
Middlesex Water’s growth is fueled by a $93 million capital program in 2025, covering water main replacements, meter installations, and compliance upgrades. The company’s RENEW program systematically modernizes infrastructure, safeguarding public health and enhancing system resilience. In April 2025, Middlesex Water acquired the water assets of the Town of Ocean View in Sussex County, Delaware, for $4.6 million, adding 900 customers to its Delaware operations. The company plans to invest approximately $387 million over the next three years in water and wastewater infrastructure, ensuring service quality and system resiliency. Middlesex Water also benefits from annual rate increases—Delaware’s Public Service Commission recently approved a $5.5 million increase, supporting earnings growth.
Fun Fact – A legacy spanning more than a century
Middlesex Water’s roots go back to 1897, making it one of the oldest water utilities in the U.S. The company’s acquisition of the Town of Ocean View water system in 2025 adds to its long history of growth and modernization. The 54-year streak of dividend increases is one of the longest in the utility sector, underscoring the company’s commitment to stability and shareholder returns.
Final Take
Middlesex Water combines a high-yield, long-growing dividend with a legacy of operational excellence in regulated utilities. Its Financial Score of 87 from BeatMarket reflects solid fundamentals and prudent risk management, though not top-tier bulletproof status. The company’s strengths are its enduring dividend record, robust cash flow, and disciplined infrastructure spending. For investors seeking reliable income with a touch of historical resilience, Middlesex Water offers a proven track record of steady payouts and steady growth, with some regulatory and capital intensity risks to monitor.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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