South Jersey Industries (SJI) is one of the highest paying dividend stocks we cover. But is it one of the best monthly dividend stocks? We will answer this question in this report.
South Jersey Industries (SJI) is an energy services holding company. SJI provides energy-related services and products through its numerous subsidiaries. Those subsidiaries include South Jersey Gas Company (SJG), South Jersey Resources Group (SJRG), and Marina Energy LLC (Marina).
There is a lot to like about SJI. SJI’s cash flows have been consistently positive. It has consistently raised its dividend, and it has the potential to continue raising its dividend. Its dividends are currently only a fraction of its cash flow from operations. Furthermore, SJI’s growth prospects are at least decent. In fact, for a utility firm, you can even argue they are above average.
But SJI is also priced slightly on the high side. Most of its price multiples (e.g. P/E, P/S, earnings yield [enterprise-value based]) are at least modestly high. This neutralizes many of the positive aspects of this firm.
SJI is the kind of firm we like to watch, and if its price drifts down without any decrease in its fundamentals, then it becomes a serious candidate for investment. Right now, it is not. We do not consider SJI one of our top dividend paying stocks
If you would like to see some of those that are and some of the other good stocks we cover, click the link below.
Stat Sheet – South Jersey Industries
|Industry||Natural Gas Utilities|
|Market Cap||$ xxx|
|Price Volatility||Below Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016)
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