New Jersey Resources
Energy services holding company New Jersey Resources (NJR) is actually a conglomeration of a number of utility-like operations such as New Jersey Natural Gas and NJR Energy Holdings that provides retail and wholesale energy from the Gulf Coast to the Northeast.
Both top- and bottom-line figures for New Jersey Resources have fluctuated a bit as energy prices have bounced around, and in particular NJR was hit hard in 2012 as a result of catastrophic damage to NJR’s distribution systems during Hurricane Sandy. NJR was forced to shut down service throughout a wide swath of its customer base for several months, affecting revenues, and took additional expenses as it repaired damaged equipment.
Even though NJR took a huge hit in cash flow thanks to capex spending in 2012, it still raised its dividend yet again this year to 42 cents per quarter — representing a 35% improvement in the past five years.
That dedication to improving its payout amid a large-scale disaster speaks volumes about the dividend at New Jersey Resources. Yes, NJR still remains a risk because of its relatively small size, but the dividend is about as sturdy as they come.