SJW Group announces 5% dividend increase

SAN JOSE, Calif. - SJW Group (NASDAQ: NYSE:SJW), a leading water and wastewater utility company with a market capitalization of $1.68 billion, has announced a 5% increase in its quarterly cash dividend. The dividend, set at $0.42 per share, will be payable on March 3, 2025, to shareholders of record as of February 10, 2025. This increase boosts the annualized dividend to $1.68 per share from $1.60 in the previous year, resulting in a current yield of 3.16%.

The company’s President, CEO, and Chair, Eric W. Thornburg, highlighted the board’s confidence in the company’s mission and its employees, emphasizing their commitment to delivering high-quality water service, environmental protection, and shareholder value. According to InvestingPro data, SJW Group has maintained dividend payments for 53 consecutive years, with 32 consecutive years of increases. InvestingPro subscribers can access 6 additional key insights about SJW’s dividend sustainability and growth potential.

SJW Group operates major water utilities in California, Connecticut, Maine, and Texas, serving approximately 1.6 million people. The company focuses on investing in its operations, engaging with local communities, and delivering sustainable value to its stockholders. Recent performance shows revenue growth of 7.69% over the last twelve months, with the stock showing strong momentum, gaining nearly 10% in the past week.

This dividend announcement is based on a press release statement and reflects the company’s performance and strategic priorities. InvestingPro analysis indicates a FAIR overall Financial Health Score of 2.3, with detailed metrics available to subscribers. However, it should be noted that forward-looking statements involve risks and uncertainties, and actual results may differ materially. Factors that could affect SJW Group’s performance include regulatory actions, changes in water demand, climate change, and various economic and market conditions, among others.

Investors are advised that this information, while indicative of the company’s current dividend policy, is subject to change in response to future financial performance and market dynamics.

In other recent news, water supply company SJW Group has reported significant financial strides, with a 10% increase in Q3 revenue to $225.1 million and a 7% rise in net income to $38.7 million. The gains were largely due to rate increases and higher water production costs. The company also announced an equity distribution agreement that could see the sale of up to $200 million of its common stock in at-the-market offerings, with BofA Securities, J.P. Morgan Securities, RBC Capital Markets, and Wells Fargo (NYSE:WFC) Securities acting as sales agents.

This agreement allows SJW Group to sell shares directly on the New York Stock Exchange, with no obligation to sell any shares and the ability to suspend offers at any given time. The potential capital raised is intended for future acquisitions, general corporate purposes, infrastructure improvements, debt repayment, and working capital needs.

SJW Group has also secured a $22.1 million agreement to manage Cupertino’s water system and a $4.3 million revenue increase in Connecticut. Despite concerns raised by Connecticut towns regarding tax revenue impacts from potential acquisitions, the company remains focused on maintaining affordability for customers and replacing 1% of pipes annually. These are among the latest developments for SJW Group, which continues to show a strong commitment to infrastructure investment, sustainability, and regulatory compliance.

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