New Jersey Resources Raises Dividend 5.3% to $0.50

New Jersey Resources Corporation raised its quarterly dividend 5.3% to $0.50 a share from $0.475, establishing an annual dividend of $2.00. Shares began trading ex-dividend on September 24, 2026. The increase extends one of the longer dividend-growth records in the regulated-gas utility industry.

Why the dividend changed

The board unanimously approved the increase, with Chief Executive Officer Steve Westhoven saying it reflected confidence in NJR’s “financial strength and long-term growth prospects.” The company did not tie the decision to a transaction, split or other special situation. It presented the increase as part of its regular capital-return policy and continuing business growth. New Jersey Resources’ dividend declaration

The decision followed improved fiscal 2026 results. NJR reported third-quarter net income of $9.7 million, or $0.10 a share, compared with a net loss of $15.1 million, or $0.15 a share, a year earlier. Year-to-date net income increased to $351.1 million from $320.6 million. Management also tightened its fiscal 2026 net financial earnings guidance to $3.52 to $3.62 a share and retained its long-term growth target of 7% to 9%. NJR’s fiscal 2026 third-quarter results

Cash generation strengthened alongside earnings. Cash flow from operations rose to $577.8 million in the first nine months of fiscal 2026 from $385.2 million a year earlier, helped by Energy Services margins and higher base rates at New Jersey Natural Gas. Capital expenditures increased to $553.0 million from $456.8 million, reflecting heavier investment in the utility and clean-energy businesses. NJR plans to deploy between $4.8 billion and $5.2 billion through 2030, with more than 60% directed to the gas utility. NJR’s fiscal 2026 third-quarter results

Dividend track record

The payment history shows a consistent pattern of annual increases rather than irregular adjustments. The quarterly rate was $0.45 for the December 2024, March 2025 and June 2025 ex-dividend dates. It rose to $0.475 beginning in September 2025, remained there for the next three payments and then advanced to $0.50 in September 2026.

Full-year dividends increased from $1.29 a share in 2020 to $1.39 in 2021, $1.51 in 2022, $1.62 in 2023, $1.74 in 2024 and $1.85 in 2025. The annual increases were 7.7%, 8.2%, 7.6%, 7.4% and 6.3%, respectively. The five-year annualized dividend-growth rate is 7.4% annual growth, indicating that the latest 5.3% increase is smaller than the recent longer-term pace.

NJR says the new declaration marks its 31st consecutive year of dividend growth. That company-reported streak is one year longer than the 30 completed years reflected before the latest declaration. New Jersey Resources’ dividend declaration

Is the dividend covered?

The dividend consumes 53% of earnings. That ratio indicates earnings cover the distribution with room remaining for reinvestment, debt service and other corporate needs. It is particularly relevant for NJR because the company is funding a multiyear utility and energy-infrastructure investment program.

SmarterDividends rates the dividend A with a safety score of 93. The grade falls in the very safe range of 80-100 and reflects strong earnings coverage and the established record of annual increases. The rising operating cash flow reported through the fiscal third quarter provides additional context, although NJR’s elevated capital expenditures remain an important claim on cash.

Yield and valuation

At a share price of $51.06, the new annual dividend produces a forward yield of 3.83%. That is below the Utilities sector median forward yield of 4.36%, so NJR offers less current income than the sector midpoint despite the higher quarterly payment.

The shares recorded a 20.4% gain over one year. SmarterDividends estimates fair value at $69.10 and classifies the shares as undervalued, corresponding to 30% upside to that estimate. The fair-value assessment is an estimate rather than a forecast of market performance.

For income planning, the new rate equates to $200.00 in annual dividend income for every 100 shares, assuming the quarterly rate remains unchanged.

What to watch

The next major company update will be NJR’s fiscal 2026 year-end report. The central items will be whether full-year net financial earnings fall within the $3.52 to $3.62 guidance range and whether operating cash flow continues to support both the dividend and the expanded capital program. Segment results also bear watching because Energy Services benefited from gas-price volatility, while Clean Energy Ventures’ year-to-date earnings declined after a prior-year asset-sale gain. NJR’s fiscal 2026 third-quarter results

Investors also have a regulatory milestone ahead. New Jersey Natural Gas has asked the New Jersey Board of Public Utilities to approve recovery of reliability investments through a base-rate increase. NJR said the combined effect of that request and separate customer-savings filings would leave average annualized customer bills nearly flat, but the regulator will determine the timing and final terms. New Jersey Natural Gas’ regulatory filing announcement