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 8-9% pace over the last ten years
earning a 12-15% return on equity. It
should continue to increase profitability as well as an enhanced rate of
dividend growth as a result of:
(1) a rise in
the number of profitable projects in its nonutility operations,
(2) 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,
(3) a
rationalization of its operations to focus on higher profit investments and
lower costs.
Negatives:
(1) difficulties
in its wholesale energy division.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2004
Ind Ave 3.6 4 58 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
Ind Ave 45 11 NA 7 NA
Chart
Note:
SJI stock made great progress off its October 2008 low, quickly surpassing the
downtrend off its May 2007 high (straight red line) and the November 2008
trading high (green line). The stock is
in trading ranges for both the long term (blue lines) and intermediate term
(purple lines). The Dividend Growth
Portfolio owns a full position in SJI.
It is currently on the Dividend Growth Buy List. The lower boundary of its Sell Half Range is
$80.
10/14
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