Global Water Resources Declares Monthly Dividend
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Insights
The declaration of a monthly cash dividend by Global Water Resources, Inc. signals a stable cash flow position and a commitment to returning value to shareholders. The specific dividend amount of $0.02508 per common share, annualizing to $0.30096 per share, offers investors a tangible return on investment. It is crucial to analyze the company's payout ratio, which is the proportion of earnings paid out as dividends to shareholders. If this ratio is sustainably low, it may indicate the company's ability to maintain or increase dividends in the future without compromising its financial health.
Furthermore, investors should consider the dividend yield, which is the dividend per share divided by the stock price. This metric helps assess the attractiveness of the stock in relation to alternative income-generating investments. A comparison with industry average yields and historical company yields can provide context on whether the dividend is competitive. Lastly, the stability and growth prospects of the company's earnings are essential to evaluate, as they underpin the long-term viability of the dividend payments.
Global Water Resources, Inc.'s dividend declaration may also reflect broader trends within the utilities sector, particularly within water resource management. This sector is often characterized by regulated revenue streams and a high degree of predictability in terms of cash flow, making it a potentially less volatile investment. However, it's important to consider the macroeconomic context, such as interest rate changes, which could affect the relative attractiveness of dividend stocks.
Given the essential nature of water resources, demand is generally inelastic, providing a degree of protection against economic downturns. Yet, it's also important to monitor any regulatory changes or capital expenditure requirements that could impact future dividends. Investors may also look at the company's track record for dividend payments, as consistent increases could signal a strong operational performance and a shareholder-friendly management approach.
PHOENIX, Feb. 29, 2024 (GLOBE NEWSWIRE) -- Global Water Resources, Inc. (NASDAQ: GWRS), a pure-play water resource management company, has declared, under its dividend policy a monthly cash dividend in the amount of
About Global Water Resources
Global Water Resources, Inc. is a leading water resource management company that owns and operates 29 systems which provide water, wastewater, and recycled water services. The company’s service areas are located primarily in growth corridors around metropolitan Phoenix. Global Water recycles over 1 billion gallons of water annually with a total of 16.3 billion gallons recycled since 2004.
The company has been recognized for its highly effective implementation of Total Water Management (TWM). TWM is an integrated approach to managing the entire water cycle that involves owning and operating water, wastewater and recycled water utilities within the same geographic area in order to maximize the beneficial use of recycled water. It enables smart water management programs such as remote metering infrastructure and other advanced technologies, rate designs, and incentives that result in real conservation. TWM helps protect water supplies in water-scarce areas experiencing population growth.
Global Water has received numerous industry awards, including national recognition as a ‘Utility of the Future Today’ for its superior water reuse practices by a national consortium of water and conservation organizations led by the Water Environment Federation (WEF). The company also received Cityworks’ 2022 Excellence in Departmental Practice Award for demonstrating leadership and creativity in applying public asset management strategies to daily operations and long-term planning.
To learn more, visit www.gwresources.com.
Company Contact:
Michael Liebman
CFO and SVP
Tel (480) 999-5104
Email Contact
Investor Relations Contact:
Ron Both or Grant Stude
CMA
Tel (949) 432-7566
Email contact
Media Contact:
Tim Randall
CMA
Tel (949) 432-7572
Email Contact
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