New Jersey Resources Board of Directors Increases Dividend by 7.1% to $0.45 Per Share

Rhea-AI Summary

New Jersey Resources (NYSE: NJR) has announced a 7.1% increase in its quarterly dividend to $0.45 per share, up from $0.42. The new dividend will be payable on October 1, 2024, to shareholders of record as of September 23, 2024. This increase brings the annual dividend rate to $1.80 per share. NJR has consistently paid quarterly dividends since its inception in 1952 and has raised the dividend for 29 consecutive years. The company's CEO, Steve Westhoven, emphasized that this increase reflects the board's confidence in NJR's financial health and long-term growth strategy, demonstrating a commitment to delivering sustainable returns to stakeholders.

Positive

• Quarterly dividend increased by 7.1% to $0.45 per share
• Annual dividend rate raised to $1.80 per share
• 29 consecutive years of dividend increases
• Continuous quarterly dividend payments since 1952
• Management expresses confidence in financial health and growth strategy

Negative

• None.

Insights

Financial Analyst

The 7.1% dividend increase to $0.45 per share quarterly ($1.80 annually) signals strong financial health and management's confidence in NJR's future cash flows. This marks the 29th consecutive year of dividend growth, showcasing consistency and shareholder value creation. The 7.1% hike outpaces inflation, providing real income growth for investors. With a current yield of about 3.5% (based on recent stock prices), NJR remains attractive for income-focused portfolios. However, investors should note that dividend sustainability depends on continued earnings growth and stable payout ratios. The energy sector's volatility and regulatory environment could impact future dividend growth rates.

Utility Industry Expert

NJR's dividend increase reflects the stability typically associated with regulated utilities. The company's ability to maintain 29 years of consecutive dividend growth demonstrates its resilience in a changing energy landscape. This consistency is particularly noteworthy given the challenges faced by the utility sector, including the transition to renewable energy and regulatory pressures. The dividend hike suggests NJR has successfully navigated these challenges while maintaining financial flexibility. However, investors should monitor NJR's capital expenditure plans and regulatory environment, as these factors could impact future dividend growth. The company's commitment to stakeholder returns amidst industry transformation indicates a balanced approach to managing shareholder expectations and business investment needs.

WALL, N.J.--(BUSINESS WIRE)-- The board of directors (the “Board”) of New Jersey Resources Corporation (NYSE: NJR) unanimously approved a 7.1 percent increase in the quarterly dividend rate to $0.45 per share from $0.42 per share. The new quarterly rate will be effective with the dividend payable October 1, 2024 to shareowners of record on September 23, 2024.

The new annual dividend rate will be $1.80 per share. NJR has paid quarterly dividends continuously since its inception in 1952, and has raised the dividend every year for the last 29 years.

Steve Westhoven, President and CEO of NJR, stated, “This dividend increase underscores the Board’s belief in our strong financial health and confidence in our long-term growth strategy. We remain dedicated to driving sustainable returns and supporting stakeholders as we continue to advance our business objectives.”

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:

• New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains natural gas transportation and distribution infrastructure to serve approximately 582,000 customers in New Jersey’s Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties.

• Clean Energy Ventures invests in, owns and operates solar projects with a total capacity of approximately 477 megawatts, providing residential and commercial customers with low-carbon solutions.

• Energy Services manages a diversified portfolio of natural gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.

• Storage and Transportation serves customers from local distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline, as well as our 50% equity ownership in the Steckman Ridge natural gas storage facility.

• Home Services provides service contracts as well as heating, central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.

NJR and its over 1,300 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.

For more information about NJR:
www.njresources.com.

Follow us on X.com (Twitter) @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910401839/en/

Media:

Mike Kinney

732-938-1031

mkinney@njresources.com

Investors:

Adam Prior

732-938-1145

aprior@njresources.com

Source: New Jersey Resources Corporation

FAQ

What is the new quarterly dividend for New Jersey Resources (NJR)?

The new quarterly dividend for New Jersey Resources (NJR) is $0.45 per share, increased from $0.42 per share.

When will the new NJR dividend be payable?

The new NJR dividend will be payable on October 1, 2024, to shareholders of record as of September 23, 2024.

How much has New Jersey Resources (NJR) increased its dividend?

New Jersey Resources (NJR) has increased its dividend by 7.1%, from $0.42 to $0.45 per share quarterly.

What is the new annual dividend rate for New Jersey Resources (NJR)?

The new annual dividend rate for New Jersey Resources (NJR) is $1.80 per share.

How long has New Jersey Resources (NJR) been increasing its dividend?

New Jersey Resources (NJR) has been increasing its dividend for 29 consecutive years.