South Jersey
Industries (SJI ) is a holding company with
subsidiaries in natural gas distribution in southern New
Jersey and drilling and gathering of natural
gas. The company has grown profits and
dividends at 8-10% pace over the last ten years earning an 11-15% return on
equity. It should continue to increase
profitability as well as an enhanced rate of dividend growth as a result of:
(1) recent
increase in its base rates,
(2) a rise in
the number of profitable projects in its nonutility operations,
(3) growth in
its customer base [in particular from the growth in the Atlantic City area]
plus an increase in customers converting form other fuels to natural gas,
(4) a
rationalization of its operations to focus on higher profit investments and
lower costs.
Negatives:
(1)
declining revenue from its nonutility operations,
(2) difficulties
in its wholesale energy division.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note: SJI stock
made good progress off its October 2008 low, surpassing the downtrend off its
September 2007 high (red line). Long
term the stock is in an uptrend (straight blue lines). Intermediate term it is in a trading
range. The wiggly blue line is on
balance volume. The Dividend Growth
Portfolio owns a 50% position in SJI . The stock is on the Dividend Growth Buy
List. The lower boundary of its Sell
Half Range
11/13
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