Essential Utilities Raises Quarterly Dividend 5.25%

Essential Utilities Inc. increased its quarterly dividend by 5.25% to $0.361 per share from $0.343, extending the utility’s dividend-growth streak to 34 consecutive years.

The shares traded ex-dividend on Aug. 11, 2026. Based on a share price of $40.18, the new distribution represents a forward annual yield of 3.59%. The stated annual dividend is $1.44 per share.

The increase maintains a long-running pattern of annual raises at Essential Utilities, which operates regulated water, wastewater and natural-gas businesses through its Aqua and Peoples brands. Those operations serve communities across nine states, according to the company’s corporate announcement.

Operating backdrop

The higher dividend comes as Essential continues a large infrastructure program across its regulated systems. The company said it invested $662.2 million during the first half of 2026 and remained on track for $1.7 billion of investment during the full year. The spending is directed toward upgrading water and natural-gas infrastructure and improving customer service.

In its latest quarterly report, Essential said second-quarter revenue growth was supported by regulatory recoveries and purchased-gas costs. Water-segment revenue benefited from regulatory recoveries and higher volume, while natural-gas revenue reflected higher rates and surcharges but was constrained by warmer weather and lower volumes. Management also reaffirmed its longer-term earnings-growth expectations, although those operating projections do not guarantee future dividend increases. Essential Utilities’ second-quarter release provides the underlying operating details.

The company is also preparing for its pending merger with American Water. Essential said regulatory approvals had been obtained in Ohio and Virginia by the time of its second-quarter report, adding another significant corporate development to the backdrop for the dividend decision.

What it means for income investors

The increase lifts the quarterly income generated by each share while preserving Essential’s 34-year growth streak. At the specified share price, the forward yield is 3.59%, while SmarterDividends assigns the payout a safety score of 88 out of 100 and an A grade. Those measures describe the current dividend profile; they do not ensure that the distribution will be maintained or increased in the future.