RGC Resources (RGCO) reportedly disclosed the declaration of a quarterly dividend on September 28. Information in this regard was obtained from the Wall Street Journal. On Friday, October 14, 2018, the energy company announced that it would pay a shareholder dividend of $0.195 per share to investors who still held shares of the company as of today. This equates to a yield of 3.70% and a dividend of $0.78 per share per year. Ex-dividend day is Thursday, October 13, very soon.
RGC Resources has maintained its streak of increasing its dividend payout for 18 consecutive years, and over the past three years has increased that payout by an annual average of 6.0%. This increase brings the total amount that RGC Resources has paid out in dividends to its shareholders to a record high. RGC Resources’ payout ratio is 65.0%, indicating that the company is generating enough profit to cover the dividend payment. RGC Resources should be able to meet its obligation to pay a dividend of $0.78 per share, as the company expects its future payout ratio to be 65.0% and earn $1.20 per share. This should enable RGC Resources to meet its obligation to pay the dividend.
The price of NASDAQ RGCO fell $0.05 during Wednesday’s trading, taking it to a new all-time low of $21.07. During the day, an average volume of 9,028 shares of the company was traded, up from the previous volume of 3,132. Each leverage ratio, current ratio and quick ratio amount to 1.23, while the quick ratio stands at 1.27. The company has a beta of -0.20, an earnings/price ratio of -8.80, and its current market value is $177.45 million. Both of these measures indicate that the company is underperforming in the market. The company had a simple moving average of $21.01 over the past 50 days and a simple moving average of $20.69 over the past 200 days. RGC Resources hit a low of $18.01 in the past year, while the company hit a high of $25.00 in the same period.
Separately, on the same day, Monday, a research note on the company that began covering RGC Resources shares was published on StockNews.com. They offered to “offer” some shares of the company.
Several hedge funds and institutional investors have participated in recent corporate stock trading by buying and selling shares. State Street Corporation’s investment portfolio saw an increase in RGC Resources shares equal to 14.3% in the first three months of the year. State Street Corp now owns 21,968 shares of the energy company, which are currently valued at $470,000 after buying an additional 2,750 shares in the most recent period. This brings the total number of shares held by State Street Corp to 21,968. During the second quarter, Millennium Management LLC was able to achieve a 111.8% increase in its stake in RGC Resources. Millennium Management LLC now owns 25,650 shares of the energy company after making an additional purchase of 13,537 shares during the reporting period. Currently, the price placed on these shares is $480,000. In the first three months of 2018, the Bank of New York Mellon Corporation increased the percentage of RGC Resources holdings it held in its portfolio by 3.0%. Bank of New York Mellon Corp now owns 50,042 shares of the energy company, which are worth a combined total of $1,082,000 after purchasing 1,462 additional shares during the period in question. This brings the total number of shares held by the company to 50,042. During the second quarter, Renaissance Technologies LLC raised the total amount of RGC Resources shares it held 1.5% above the previous. After making an additional purchase of 1,198 shares during the period, Renaissance Technologies LLC now owns a total of 80,131 shares of the energy company, with a total value of $1,528,000. This brings the total number of shares held by the company to 80,131. Finally, in the first three months of this year, UBS Group AG was able to amass 0.6% more RGC Resources shares than at the start of the year. UBS Group AG now owns a total of 99,322 shares of energy companies, valued at $2,147,000 following the purchase of 597 additional shares in the last quarter.
Through the companies it owns and operates as subsidiaries, RGC Resources, Inc. fulfills its role as a provider of energy services to the general public. It is engaged in the sale and distribution of natural gas to residential, commercial and industrial customers in the Roanoke, Virginia metropolitan area and surrounding areas. In addition, the company provides a wide range of services exempt from compliance with applicable regulations. It also owns and operates a total of 6 meter stations, 1,157 miles of transmission and distribution network, a liquefied natural gas storage facility and a second liquefied natural gas storage facility.