DOVER, Del. - Chesapeake Utilities Corporation (NYSE: NYSE:CPK) announced today that its Board of Directors has approved an increase in the quarterly cash dividend from $0.59 to $0.64 per common share, marking an 8.5% rise in the annualized dividend rate. This change pushes the yearly dividend from $2.36 to $2.56 per share. Shareholders on record by the close of business on June 14, 2024, will be eligible for the dividend, payable on July 5, 2024.
The decision to enhance shareholder returns reflects the Board's confidence in the company's growth strategy and investment choices, including the recent acquisition of Florida City Gas and other capital investments in its service areas. Jeff Householder, the president and CEO of Chesapeake, attributed the increase to the company's strategic investments and operational excellence, which he anticipates will lead to higher earnings and future dividend growth, thereby enhancing shareholder value.
Chesapeake Utilities has a long-standing history of providing dividends to its shareholders, doing so consistently for 63 years. Moreover, the company has raised its annualized dividend each year since 2004.
Chesapeake Utilities Corporation is a diversified energy delivery company engaged in natural gas transmission and distribution, electricity services, propane gas distribution, and other related businesses. The company emphasizes sustainable energy solutions and is publicly traded on the New York Stock Exchange.
It is important to note that Chesapeake Utilities Corporation is not affiliated with Chesapeake Energy (NYSE:CHK), an oil and natural gas company based in Oklahoma City, Oklahoma.
InvestingPro Insights
Following Chesapeake Utilities Corporation's (NYSE: CPK) announcement of a dividend increase, the financial metrics and analyst insights from InvestingPro provide a deeper understanding of the company's current market standing. With a market cap of approximately $2.48 billion USD and a price-to-earnings (P/E) ratio of 23.35, Chesapeake Utilities demonstrates a solid presence in the market. The company's commitment to shareholder returns is further underscored by its impressive track record of dividend payments, having maintained dividends for 54 consecutive years and raised them for 20 consecutive years.
An important metric to consider is the price to book (P/B) ratio of 1.99 as of the last twelve months ending Q4 2023, which suggests that the company is valued reasonably in relation to its net asset value. Additionally, the dividend yield stands at 2.13% as of the latest data, reflecting the company's commitment to providing consistent returns to its investors. The recent dividend increase is a testament to the company's financial health and its ability to sustainably grow its payouts.
InvestingPro Tips highlight that analysts are optimistic about Chesapeake Utilities, predicting sales growth in the current year and profitability for the year. They have also revised earnings upwards for the upcoming period. This positive outlook is complemented by the company's performance over the last six months, which has seen a large price uptick of 27.31%.
For investors seeking more comprehensive insights, InvestingPro offers additional tips on Chesapeake Utilities Corporation, accessible at https://www.investing.com/pro/CPK. Readers can use the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of financial data and expert analysis to inform their investment decisions. There are a total of 8 additional InvestingPro Tips available for Chesapeake Utilities, providing a richer perspective on the company's financial health and market potential.
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