Essential UtilitiesMEX:WTRG 71 Dividend Payout Ratio is 0.41 as of Mar. 2026, which is 35% below its 10-year median of 0.63. GuruFocus rates MEX:WTRG with a GF Score™ of 71/100. The stock has 8 warning signs investors should review. Among 374 Utilities - Regulated companies, Essential Utilities ranks worse than 73.26% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Essential Utilities's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.41.
The historical rank and industry rank for Essential Utilities's Dividend Payout Ratio or its related term are showing as below:
During the past 13 years, the highest Dividend Payout Ratio of Essential Utilities was 0.81. The lowest was 0.56. And the median was 0.63.
MEX:WTRG's Dividend Payout Ratio is not ranked *
in the Utilities - Regulated industry.
Industry Median: 0.54 * Ranked among companies with meaningful Dividend Payout Ratio only.
During the past 12 months, Essential Utilities's average Dividends Per Share Growth Rate was 5.40% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 6.40% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 6.70% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was 6.90% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Essential Utilities was 9.30% per year. The lowest was 1.20% per year. And the median was 6.80% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Essential Utilities (MEX:WTRG) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Essential Utilities Dividend Payout Ratio Related Terms
Essential Utilities Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Essential Utilities's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:WTRG vs AWR, CWT, HTO: Dividend Payout Ratio Comparison
For the Utilities - Regulated Water subindustry, Essential Utilities's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Essential Utilities Dividend Payout Ratio vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Essential Utilities's Dividend Payout Ratio falls into.
Essential Utilities Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Essential Utilities's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Essential Utilities (MEX:WTRG) has a Dividend Payout Ratio of 0.41 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Essential Utilities and its competitors. This is 35% below median its historical median of 0.63. Over the past decade, Essential Utilities' Dividend Payout Ratio has ranged from 0.56 to 0.81. According to the industry distribution chart, Essential Utilities ranks #274 out of 374 companies in the Utilities - Regulated industry, placing it in the top 73.3%.
Is Essential Utilities' Dividend Payout Ratio too high?
Essential Utilities' current Dividend Payout Ratio of 0.41 is 35% below median its 10-year median of 0.63. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 0.81. The Utilities - Regulated industry median Dividend Payout Ratio is 0.54. Essential Utilities' value of 0.41 is 24.1% below this industry median. Based on the distribution chart, Essential Utilities ranks #274 out of 374 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Essential Utilities has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' Dividend Payout Ratio compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #274 out of 374 companies for Dividend Payout Ratio. This places Essential Utilities in the lower half of its industry. The industry median Dividend Payout Ratio is 0.54. Essential Utilities' value of 0.41 is 24.1% below this benchmark. Historically, Essential Utilities' own Dividend Payout Ratio has ranged from 0.56 to 0.81 over the past decade. While the company's 10-year median is 0.63 vs. the industry median of 0.54, Essential Utilities has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for an Utilities - Regulated company?
The median Dividend Payout Ratio among Utilities - Regulated companies is 0.54, based on 374 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current Dividend Payout Ratio of 0.41 is 24.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median Dividend Payout Ratio is 0.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current Dividend Payout Ratio is 0.41, which is 35% below median its own 10-year median of 0.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essential Utilities stock overvalued right now?
Essential Utilities (MEX:WTRG) has a current Dividend Payout Ratio of 0.41. The current Dividend Payout Ratio is 0.41, which is 35% below median its 10-year median of 0.63 and 24.1% below the Utilities - Regulated industry median of 0.54. Essential Utilities' overall GF Score™ is 71/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Essential Utilities (MEX:WTRG), the current Dividend Payout Ratio is 0.41 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Essential Utilities is a Pennsylvania-based holding company for US water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Its largest service territory is in Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 740,000 gas distribution customers in Pennsylvania and Kentucky. It completed the sale of its West Virginia gas utility and the bulk of its nonregulated assets in 2024. Essential shareholders would own a 31% stake in American Water Works if the proposed all-stock merger closes in 2027.
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