Water Investment Ideas

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Middlesex Water Company (MSEX) - >>> Middlesex Water Company was founded in 1897 and operates regulated water and wastewater utility systems in New Jersey and Delaware. It has approximately 115,000 customers across those two states.

Middlesex's revenue has been mostly flat over the past five years, increasing from $132.9 million in 2016 to $143.1 million in 2021, or just about 1% annually. The company has not sought to grow through acquisitions, and operating income has been flat as well. In 2021, it sold a Delaware wastewater facility, and, in one of its territories, rates actually decreased in response to the Tax Cuts and Jobs Act of 2017 as the company's tax payments significantly fell after that bill was passed.

Middlesex sees its net income being affected by four issues: weather, rate relief, effective cost management, and customer growth.

The company has been a reliable dividend stock over the years and regularly increases its payout. As of March 2022, Middlesex paid a 1.1% dividend yield. It has a payout ratio of about 60%, meaning that it should be able to easily increase its dividend in the coming years.

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