Here's How Many Shares Of New York Water Co You Need To Earn $500 Per Month In Dividends

Pennsylvania-based utility company York Water Co. YORW provides water purification and wastewater collection services. Founded in 1816, it’s one of the oldest utility companies in the U.S. As of the end of the first quarter, York Water's water business has about 72,000 customers. York Water's wastewater business is also expanding thanks to acquisitions. In February, York Water completed the acquisition of the wastewater assets of MESCO, Inc.

In May, York Water posted better-than-expected Q1 results. Adjusted EPS in the quarter jumped 18% year-over-year (YoY) to $0.30, surpassing the consensus estimate of $0.29. Operating revenue in the quarter totaled $17.63 million, a 14.5% YoY increase. 

York Water has a stellar dividend history. It's been paying regular dividends to shareholders for 209 years without a break. Although utility stocks are known for their high dividend yields, York Water’s dividend yield is just 2.3% as of June 13. Water utility companies’ dividend yields are usually lower than those of gas and electric companies. Nonetheless, York Water’s dividend growth record and financial health make it an attractive dividend stock for income investors. York Water Co. has increased its dividend for 27 straight years, as of the end of 2023.

Given York Water’s strong dividend growth history, it would be interesting to know how to earn $500 per month in dividends from this stock. Let’s find out.

First, we will calculate the number of York Water shares you need to buy to reach your income goal. An income of $500 per month means you will generate $6,000 per year in dividends from York Water. The company pays a dividend of $0.2108 per share, which is $0.8432 per share annually ($0.2108 X 4 = $0.8432).

Number of shares needed = $6,000 / $0.8432 = 7,115.74

To earn $500 a month from York Water, you need to buy about 7,116 shares of the company.

Total Investment Needed to Earn $500 a Month from York Water Dividends:

But how much would those shares cost? Let’s calculate the investment you need to reach the $500/month goal in dividends from York Water. We will multiply the total number of shares by the stock’s latest price. York Water closed at $36.37 on June 13.

Total Investment Needed to Earn $500/month from York Water Dividends = $36.37 x 7,116 = $258,808

You’d need to invest about $258,808 in York Water to start earning $500 per month in dividends.

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