Chesapeake Utilities raises dividend to $0.685 per share

Published 07/05/2025, 20:42
Chesapeake Utilities raises dividend to $0.685 per share

DOVER, Del. - Chesapeake Utilities Corporation (NYSE:CPK), a $3.07 billion utility company currently yielding 1.92%, announced today that its Board of Directors has approved an increase in the quarterly cash dividend from $0.64 to $0.685 per share, marking a 7 percent rise in the annualized dividend rate from $2.56 to $2.74 per share. The new dividend is scheduled to be paid on July 7, 2025, to shareholders on record as of June 16, 2025.

Jeff Householder, the chair, president, and CEO of Chesapeake Utilities, stated that the dividend hike is a reflection of the company’s commitment to a strategic growth plan that emphasizes capital investment, dividend growth supported by earnings growth, and operational transformation. The increase is part of the company’s approach to deploying capital strategically, managing regulatory strategy proactively, and continuously transforming business operations to support sustained industry-leading earnings growth and continued dividend growth. These measures are expected to provide superior value to shareholders over the long term.According to InvestingPro analysis, the company maintains a "GOOD" financial health score, with strong revenue growth of 17.39% in the last twelve months.

Chesapeake Utilities has a long-standing history of providing dividends to its shareholders, having maintained payments for 55 consecutive years and increased dividends for 21 straight years. The stock currently trades near its 52-week high, with a P/E ratio of 25.41.

The company is a diversified energy delivery business that operates in various sectors, including natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services, and other related businesses.

This dividend increase is based on a press release statement from Chesapeake Utilities Corporation.

In other recent news, Chesapeake Utilities Corporation reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of $1.60, below the forecasted $1.67, and revenue of $215 million, missing the anticipated $231.35 million. Despite this, Chesapeake Utilities demonstrated robust full-year performance, with a 25% increase in adjusted gross margin to $567 million and a 24% rise in adjusted net income to $122 million. Additionally, the company reaffirmed its 2025 EPS guidance of $6.15 to $6.35, indicating a 14-18% increase over the adjusted EPS for 2024. Chesapeake Utilities also outlined a five-year capital expenditure plan ranging from $1.5 to $1.8 billion, focusing on significant growth in its Florida and Delmarva service areas. The recent acquisition of Florida City Gas was highlighted as a pivotal move, contributing significantly to the company’s growth strategy. Furthermore, the company plans to continue its aggressive investment strategy with a 2025 capital expenditure guidance of $325 million to $375 million. These developments were shared during the company’s Investor Day, where leadership emphasized ongoing strategic investments and growth opportunities.

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