York Water: Wall Street's Greatest Dividend Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy YORW?
Source: Fool
- Dividend Yield Advantage: York Water's dividend yield stands at 3.1%, which may seem modest, but its uninterrupted dividend payments since 1816 highlight its strong income stability and appeal in the market.
- Market Performance Review: Over the past five years, York Water's stock has plummeted by 44%, nearing a 50% decline from its peak, reflecting the market's indifference towards utilities, especially amid a tech stock rally that has diminished interest in traditional utilities.
- Regulatory Support and Revenue Growth: The Pennsylvania Public Utility Commission's approval for York Water to raise rates is expected to boost annual revenue by $18.85 million, or 24%, providing robust support for the company's future cash flow and profitability.
- Valuation Attractiveness: York Water is currently trading at less than 18 times earnings, significantly below the industry average, and represents a 44% discount to its average forward P/E ratio over the past five years, presenting a compelling investment opportunity at this price level.
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Analyst Views on YORW
About YORW
The York Water Company is a provider of water and wastewater utility services. The Company's primary business is to impound, purify to meet or exceed safe drinking water standards and distribute water. The Company also owns and operates three wastewater collection systems and twelve wastewater collection and treatment systems. The Company operates within its franchised water and wastewater territory, which covers portions of 58 municipalities within four counties in south-central Pennsylvania. The Company is regulated by the Pennsylvania Public Utility Commission (PPUC) for both water and wastewater in the areas of billing, payment procedures, dispute processing, terminations, service territory, debt and equity financing and rate setting. Water service is supplied through its own distribution system. The Company obtains the bulk of its water supply for its primary system for York and Adams Counties from both the South Branch and East Branch of the Codorus Creek.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
York Water Q1 Earnings Miss Expectations
- Earnings Performance: York Water's Q1 GAAP EPS of $0.33 fell short by $0.08, indicating pressure on profitability that could undermine investor confidence in the company's financial health.
- Revenue Growth Lags: The company reported Q1 revenue of $20.07 million, an 8.7% year-over-year increase, yet it missed market expectations by $0.83 million, suggesting that revenue growth is not keeping pace in a competitive market.
- Historical Dividend Record: York Water has maintained dividends since 1816, totaling 210 years, and while the current earnings report is disappointing, its consistent dividend policy may still attract income-seeking investors.
- Industry Context: As the Colorado River crisis deepens, Western states are looking into desalination deals, presenting potential new market opportunities for York Water, although its current financial shortcomings may limit its expansion capabilities.
See More
York Water Co. Reports Increased Q1 Profit
- Profit Growth: York Water Co. reported a first-quarter net profit of $4.81 million, translating to earnings per share of $0.33, which marks a significant increase from last year's $3.64 million and $0.25 per share, indicating robust performance in water management.
- Revenue Increase: The company's revenue rose by 8.7% year-over-year to $20.07 million, up from $18.46 million last year, reflecting an expansion in customer base and service offerings.
- Market Positioning: The dual growth in revenue and profit further solidifies York Water's market position in the water industry, enhancing its capacity for future investments and expansions.
- Financial Health: The sustained profit and revenue growth provide a stronger financial foundation for the company, enabling it to pursue more capital expenditures and strategic investments to address industry challenges and seize market opportunities.
See More
York Water Company Reports Q1 2026 Financial Results
- Revenue Growth: York Water Company reported operating revenues of $20.074 million for Q1 2026, an increase of $1.618 million compared to Q1 2025, primarily driven by rate increases effective March 1, 2026, despite the reset of the Distribution System Improvement Charge to zero, indicating positive performance in expanding the customer base.
- Net Income Increase: The company achieved a net income of $4.814 million in the first quarter, up $1.176 million year-over-year, with basic and diluted earnings per share at $0.33, reflecting effective management in tax deductions and revenue growth.
- Capital Investment: In Q1 2026, York Water invested $9.8 million in infrastructure improvements and enterprise software upgrades, with an additional $38.1 million planned for the year to ensure a safe and reliable drinking water supply, supporting the growing customer demand.
- Acquisition Expansion: The company also acquired two wastewater systems for $470,000, including CMV Sewage Co. in York County and Pine Run Retirement Community in Adams County, further enhancing its competitive position and service capabilities in the water utility market.
See More
York Water: Wall Street's Greatest Dividend Stock
- Dividend Yield Advantage: York Water's dividend yield stands at 3.1%, which may seem modest, but its uninterrupted dividend payments since 1816 highlight its strong income stability and appeal in the market.
- Market Performance Review: Over the past five years, York Water's stock has plummeted by 44%, nearing a 50% decline from its peak, reflecting the market's indifference towards utilities, especially amid a tech stock rally that has diminished interest in traditional utilities.
- Regulatory Support and Revenue Growth: The Pennsylvania Public Utility Commission's approval for York Water to raise rates is expected to boost annual revenue by $18.85 million, or 24%, providing robust support for the company's future cash flow and profitability.
- Valuation Attractiveness: York Water is currently trading at less than 18 times earnings, significantly below the industry average, and represents a 44% discount to its average forward P/E ratio over the past five years, presenting a compelling investment opportunity at this price level.
See More
York Water's Dividend Advantages Shine Amid Market Challenges
- Dividend Performance: Analysts from Hartford Funds and Ned Davis Research found that dividend-paying stocks have delivered an average annual return of 9.2% over the past 52 years, more than double that of non-payers, highlighting the long-term investment value of dividend stocks.
- Stock Price Volatility: York Water's stock has declined by 44% over the past five years, primarily due to premium valuations, inflation, and a recent public offering that pushed shares to an eight-year low, creating opportunities for opportunistic investors.
- Stable Cash Flow: York Water has paid dividends continuously since 1816, benefiting from predictable water demand and its monopoly status, ensuring cash flow predictability, with a projected $18.85 million increase in annual revenue from rate hikes.
- Attractive Valuation: Currently, York Water trades at less than 18 times earnings, significantly below the industry average, representing the cheapest investment opportunity in 25 years, drawing increased investor interest.
See More
Century-Old Dividend Stocks Offering Reliable Returns
- Coca-Cola's Dividend Strength: Coca-Cola has consistently paid dividends since 1920, currently yielding 2.6%, significantly above the S&P 500's 1.1%, demonstrating financial resilience amid economic volatility, and has raised its dividend for 64 consecutive years, qualifying as a Dividend King.
- ExxonMobil's Stable Returns: ExxonMobil has paid dividends since 1882, with a current yield of 2.7%; while its dividend growth history is shorter than Coca-Cola's, it has increased payouts for 43 years, reflecting strong profitability in the oil and gas sector, with last year's earnings reaching $28.8 billion.
- York Water's Reliability: York Water has not missed a dividend payment since 1816, offering a yield of 3.1%, and reported over $20 million in profit on $77 million in revenue last year, showcasing its stability and profitability in the water services industry.
- Attractiveness of Dividend Stocks: These companies not only provide high-yield dividends but also serve as ideal choices for risk-averse investors due to their long payment histories and stable financial performance, especially in the context of increasing economic uncertainty.
See More
York Water Q1 Earnings Miss Expectations
- Earnings Performance: York Water's Q1 GAAP EPS of $0.33 fell short by $0.08, indicating pressure on profitability that could undermine investor confidence in the company's financial health.
- Revenue Growth Lags: The company reported Q1 revenue of $20.07 million, an 8.7% year-over-year increase, yet it missed market expectations by $0.83 million, suggesting that revenue growth is not keeping pace in a competitive market.
- Historical Dividend Record: York Water has maintained dividends since 1816, totaling 210 years, and while the current earnings report is disappointing, its consistent dividend policy may still attract income-seeking investors.
- Industry Context: As the Colorado River crisis deepens, Western states are looking into desalination deals, presenting potential new market opportunities for York Water, although its current financial shortcomings may limit its expansion capabilities.
See More
York Water Co. Reports Increased Q1 Profit
- Profit Growth: York Water Co. reported a first-quarter net profit of $4.81 million, translating to earnings per share of $0.33, which marks a significant increase from last year's $3.64 million and $0.25 per share, indicating robust performance in water management.
- Revenue Increase: The company's revenue rose by 8.7% year-over-year to $20.07 million, up from $18.46 million last year, reflecting an expansion in customer base and service offerings.
- Market Positioning: The dual growth in revenue and profit further solidifies York Water's market position in the water industry, enhancing its capacity for future investments and expansions.
- Financial Health: The sustained profit and revenue growth provide a stronger financial foundation for the company, enabling it to pursue more capital expenditures and strategic investments to address industry challenges and seize market opportunities.
See More
York Water Company Reports Q1 2026 Financial Results
- Revenue Growth: York Water Company reported operating revenues of $20.074 million for Q1 2026, an increase of $1.618 million compared to Q1 2025, primarily driven by rate increases effective March 1, 2026, despite the reset of the Distribution System Improvement Charge to zero, indicating positive performance in expanding the customer base.
- Net Income Increase: The company achieved a net income of $4.814 million in the first quarter, up $1.176 million year-over-year, with basic and diluted earnings per share at $0.33, reflecting effective management in tax deductions and revenue growth.
- Capital Investment: In Q1 2026, York Water invested $9.8 million in infrastructure improvements and enterprise software upgrades, with an additional $38.1 million planned for the year to ensure a safe and reliable drinking water supply, supporting the growing customer demand.
- Acquisition Expansion: The company also acquired two wastewater systems for $470,000, including CMV Sewage Co. in York County and Pine Run Retirement Community in Adams County, further enhancing its competitive position and service capabilities in the water utility market.
See More
York Water: Wall Street's Greatest Dividend Stock
- Dividend Yield Advantage: York Water's dividend yield stands at 3.1%, which may seem modest, but its uninterrupted dividend payments since 1816 highlight its strong income stability and appeal in the market.
- Market Performance Review: Over the past five years, York Water's stock has plummeted by 44%, nearing a 50% decline from its peak, reflecting the market's indifference towards utilities, especially amid a tech stock rally that has diminished interest in traditional utilities.
- Regulatory Support and Revenue Growth: The Pennsylvania Public Utility Commission's approval for York Water to raise rates is expected to boost annual revenue by $18.85 million, or 24%, providing robust support for the company's future cash flow and profitability.
- Valuation Attractiveness: York Water is currently trading at less than 18 times earnings, significantly below the industry average, and represents a 44% discount to its average forward P/E ratio over the past five years, presenting a compelling investment opportunity at this price level.
See More
York Water's Dividend Advantages Shine Amid Market Challenges
- Dividend Performance: Analysts from Hartford Funds and Ned Davis Research found that dividend-paying stocks have delivered an average annual return of 9.2% over the past 52 years, more than double that of non-payers, highlighting the long-term investment value of dividend stocks.
- Stock Price Volatility: York Water's stock has declined by 44% over the past five years, primarily due to premium valuations, inflation, and a recent public offering that pushed shares to an eight-year low, creating opportunities for opportunistic investors.
- Stable Cash Flow: York Water has paid dividends continuously since 1816, benefiting from predictable water demand and its monopoly status, ensuring cash flow predictability, with a projected $18.85 million increase in annual revenue from rate hikes.
- Attractive Valuation: Currently, York Water trades at less than 18 times earnings, significantly below the industry average, representing the cheapest investment opportunity in 25 years, drawing increased investor interest.
See More
Century-Old Dividend Stocks Offering Reliable Returns
- Coca-Cola's Dividend Strength: Coca-Cola has consistently paid dividends since 1920, currently yielding 2.6%, significantly above the S&P 500's 1.1%, demonstrating financial resilience amid economic volatility, and has raised its dividend for 64 consecutive years, qualifying as a Dividend King.
- ExxonMobil's Stable Returns: ExxonMobil has paid dividends since 1882, with a current yield of 2.7%; while its dividend growth history is shorter than Coca-Cola's, it has increased payouts for 43 years, reflecting strong profitability in the oil and gas sector, with last year's earnings reaching $28.8 billion.
- York Water's Reliability: York Water has not missed a dividend payment since 1816, offering a yield of 3.1%, and reported over $20 million in profit on $77 million in revenue last year, showcasing its stability and profitability in the water services industry.
- Attractiveness of Dividend Stocks: These companies not only provide high-yield dividends but also serve as ideal choices for risk-averse investors due to their long payment histories and stable financial performance, especially in the context of increasing economic uncertainty.
See More
