York Water Has Raised Its Dividend for 13 Years and the Streak Looks Secure

1 day ago 4

William Temple

Mon, December 15, 2025 astatine 7:08 AM CST 4 min read

A integer surface displays a fiscal investigation for York Water Company (YORW) dividend safety, titled 'YORW DIVIDEND SAFETY: ANALYSIS'. The salient standing is 'SAFE', accompanied by a glowing bluish h2o droplet icon. Below, 'HEALTHY COVERAGE' metrics see a Payout Ratio of 63.1% (Healthy), Operating CF Coverage of 2.53x, and 13+ Years of Increases. Opposite, 'MOUNTING CAPITAL DEMANDS' lists Free Cash Flow arsenic NEGATIVE ($18.45M) and Interest Burden arsenic RISING, with reddish informing icons. Glowing bluish lines link these points to the cardinal rating. A concluding connection reads: 'Stable Income, Moderate Future Growth. Capital Constraints & Interest Costs Require Monitoring.'

York Water raised its quarterly dividend 4.0% to $0.228 per stock with a 63.1% payout ratio and 2.53x operating currency travel coverage.
Capital expenditures of $49M exceeded operating currency travel by $18.45M successful 2024 arsenic infrastructure concern continues.
Interest disbursal surged 74% implicit 3 years and present consumes 43.8% of operating income arsenic indebtedness reached $227M.
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York Water (Nasdaq: YORW) declared a quarterly dividend of $0.228 per stock successful November 2025, marking a 4.0% summation from the anterior twelvemonth and extending a outgo streak that stretches backmost implicit a decade. The yearly dividend present stands astatine $0.89 per share, yielding 2.63%. For income investors evaluating this 209-year-old regulated h2o utility, the cardinal question is whether the dividend tin withstand mounting superior demands and rising indebtedness work costs.

Metric

Value

Annual Dividend	$0.89 per share
Dividend Yield	2.63%
Consecutive Years of Increases	13+ years
Most Recent Increase	4.0% (November 2025)
5-Year Dividend CAGR	4.2%

York Water paid $12.09 cardinal successful dividends during 2024 against nett income of $20.33 million, producing an net payout ratio of 59.5%. Based connected trailing twelve-month EPS of $1.39, the existent payout ratio sits astatine 63.1%. Both figures stay good beneath the 70% threshold that typically signals stress.

Operating currency travel generated $30.56 cardinal during 2024 portion paying $12.09 cardinal successful dividends, delivering 2.53x coverage. This sum ratio has remained unchangeable betwixt 2.0x and 2.8x implicit the past 5 years.

Metric

TTM/2024 Value

Assessment

Earnings Payout Ratio	63.1%	Healthy
Operating CF Coverage	2.53x	Strong
Free Cash Flow	($18.45M)	Negative

The complication surfaces erstwhile examining escaped currency flow. Capital expenditures totaled $49.01 cardinal successful 2024, acold exceeding operating currency travel and producing antagonistic escaped currency travel of $18.45 million. This spread has persisted for years arsenic the institution invests heavy successful infrastructure replacement and expansion.

York Water finances its superior programme done indebtedness and equity. Total indebtedness reached $227.32 cardinal arsenic of Q3 2025, producing a debt-to-equity ratio of 0.95. Interest disbursal surged 74% implicit the past 3 years, climbing from $5.11 cardinal successful 2022 to $8.90 cardinal successful 2024.

Interest present consumes 43.8% of operating income, up from 20.9% successful 2022. This rising load reflects some accrued borrowing and higher rates. With EBITDA of $42.50 million, nett debt-to-EBITDA sits astir 5.3x, elevated for a inferior but manageable fixed the regulated concern model.