Collect "Cozy Dividends" With This Winter Utility Stock

4% Yield And Inflation-Beating Dividend Growth

September 13, 2025

In partnership with

Do you like fall?

It’s my favorite season. Something about being outside in the brisk weather, then going indoors to a nice warm environment to read a book or have a steaming hot cup of coffee…

With fall on the horizon, a lesser-known utility sector is about to see its demand rise.

Natural gas utilities get even less coverage than water or electric utilities. And these stocks often trade at extremely cheap valuations while paying decently high starting yields.

Case in point?

New Jersey Resources Corporation ($NJR). This is a regulated natural gas utility that has been in business for more than 100 years and has raised its dividend every year for the past 30 years.

And if a 30-year dividend growth streak isn’t enough, New Jersey Resources has also paid a dividend every quarter since 1952.

The company serves roughly 576,000 customers across six different New Jersey counties. The firm also operates a clean energy segment that installs solar panels throughout New Jersey, Rhode Island, New York, Connecticut, Michigan, and Indiana. And, New Jersey Resources Corporation owns NJR Midstream, a natural gas pipeline and storage business.

New Jersey Resources Corporation is a diversified company. However, the regulated utility segment is still the firm's main focus.

And like many utility companies, this is a “boring business” that most investors ignore.

Good news for anyone looking for dependable dividend income and inflation-beating dividend growth.

New Jersey Resources Corporation currently trades at a price to earnings ratio of 14.72 while paying a 4.02% starting dividend yield. On top of this, the firm’s dividend is well protected with a payout ratio of just 44.78%.

This low payout ratio has also allowed New Jersey Resources to continuously raise its dividend at a rate that outpaces inflation. The company has a 5-year compound annual dividend growth rate of 7.57%. And last week, New Jersey Resources announced its latest dividend raise— a 5.6% increase.

While it would have been nice to see another 7% raise, the company’s low payout ratio means there’s plenty of room for future growth.

Additionally, New Jersey Resources Corporation is currently yielding a 4%+ starting dividend. And with a 10-year average annual total return of 8.97%, shareholders would double their money within approximately eight years.

I’ve kept my eye on New Jersey Resources Corporation for several years and have always been interested in buying shares if the starting yield climbed to 4% or more.

New Jersey Resources Corporation has seen its share price slide from $51.95 in November 2024, to its current price of $47.20. This sell-off, plus the recent 5.6% dividend raise, has pushed the firm’s starting yield past 4%.

With 30 years of continuous dividend raises, a 73-year history of paying quarterly dividends, and a low payout ratio that enables inflation-beating dividend growth, I’m certainly interested in this stock. New Jersey Resources Corporation might not be an exciting or trendy company, but it is a reliable source of dependable dividend income.

If you like utility stocks, give this firm a look.

New Jersey Resources Corporation Fast Facts

  • Forward PE ratio of 14.72

  • 4.02% starting dividend yield

  • 5-year dividend CAGR of 7.57%

  • Payout ratio of 44.78%

  • 10-year average annual total return of 8.97%

Keep This Stock Ticker on Your Watchlist

They’re a private company, but Pacaso just reserved the Nasdaq ticker “$PCSO.”

No surprise the same firms that backed Uber, eBay, and Venmo already invested in Pacaso. What is unique is Pacaso is giving the same opportunity to everyday investors. And 10,000+ people have already joined them.

Created a former Zillow exec who sold his first venture for $120M, Pacaso brings co-ownership to the $1.3T vacation home industry.

They’ve generated $1B+ worth of luxury home transactions across 2,000+ owners. That’s good for more than $110M in gross profit since inception, including 41% YoY growth last year alone.

And you can join them today for just $2.90/share. But don’t wait too long. Invest in Pacaso before the opportunity ends September 18.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.