Many may not have heard of Chesapeake Utilities (CPK) , but now may be the time to take a look at the natural gas distributor and service provider.
The company is known for consistently growing its dividend, and after having done so this May, it hopes to raise the dividend once more next year, CEO Jeff Householder told TheStreet. Meanwhile, the U.S. economy is closer to the end than the beginning of its current economic boom, and the S&P 500 isn't far removed from fresh all-time highs, and up 13.7% year-to-date.
"We've consistently been raising it [the dividend] every year, so we're looking forward to doing that next year as well," Householder said. "When you look out at out growth projection, we see significant investment opportunities, good margin production, and that dividend continuing to increase."
The dividend yield is currently 1.74%, as Chesapeake announced a dividend increase by 9.5% to 40.5 cents a share from 37 cents.
Chesapeake is known for its ability to raise its dividend. It has raised its dividend for the past 57 years, and has been an incredibly low volatility stock dating back to its early days as a public company in 1979.
So how is this steady-eddy company able to generate cash flow and grow its dividend so consistently? "We've been lucky that we found a lot of great projects, and out people consistently find investments for us, and we've been able to execute on those investments for 57 years," Householder said.
Analysts polled by FactSet are looking for cash flow from operations to grow by 18.7% from 2019 to 2020 and then 8% from 2020 to 2021.
The risk? The stock is up 17% in 2019.