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Middlesex Water offers steady dividend growth with a 53-year streak and is slightly undervalued at 20x 2026 EPS.

Analyst Insights
13 Oct 2026
Seeking Alpha
View Source
Bullish
Middlesex Water offers steady dividend growth with a 53-year streak and is slightly undervalued at 20x 2026 EPS.

Middlesex Water, a regulated utility in New Jersey and Delaware, maintains a strong track record with 53 consecutive years of dividend increases. The stock is currently trading at about 20 times estimated 2026 earnings per share, below its historical range of 28–33 times, suggesting it is slightly undervalued with a fair value estimate of $56.07. It offers a dividend yield of 2.7%, above its four-year average, with expected annual dividend growth of 5–6% and a sustainable payout ratio of 54%. Despite risks from rising interest rates, the company's prudent debt management, stable regulatory environment, and ongoing infrastructure investments support a positive outlook and a 'buy' rating.

Middlesex Water's recent performance is given context by the Utilities sector on Pluang. Of 30 priced Utilities-sector US stocks, 20 rose and 10 fell today. Notable prices include CEG at USD 288.68 with a 1-day change of -1.77%, VST at USD 156.42 down 1.08%, and HTO at USD 59.09 up 0.75%. This data is as of Oct 13, 2026 20:33 WIB.

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