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Essential UtilitiesWTRG +0.40%76 5-Year Yield-on-Cost % is 4.74 as of Aug. 08, 2026, which is 46% above its 10-year median of 3.25. GuruFocus rates WTRG with a GF Score™ of 76/100 and a GF Value™ of $41.93 (Fairly Valued). The stock has 8 warning signs investors should review. Among 438 Utilities - Regulated companies, Essential Utilities ranks better than 58.45% on this metric.
Essential Utilities's yield on cost for the quarter that ended in Jun. 2026 was 4.74.
The historical rank and industry rank for Essential Utilities's 5-Year Yield-on-Cost % or its related term are showing as below:
WTRG'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.34 Med: 3.25 Max: 5.23
Current: 4.74
During the past 13 years, Essential Utilities's highest Yield on Cost was 5.23. The lowest was 2.34. And the median was 3.25.
WTRG's 5-Year Yield-on-Cost % is ranked better than 58.45% of 438
companies
in the Utilities - Regulated industry
Industry Median: 4.18
vs WTRG: 4.74
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Essential Utilities 5-Year Yield-on-Cost % Related Terms
WTRG vs AWR, CWT, HTO: 5-Year Yield-on-Cost % Comparison
For the Utilities - Regulated Water subindustry, Essential Utilities's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Essential Utilities's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Essential Utilities (WTRG) has a 5-Year Yield-on-Cost % of 4.74 as of Aug. 08, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Essential Utilities and its competitors. This is 46% above median its historical median of 3.25. Over the past decade, Essential Utilities' 5-Year Yield-on-Cost % has ranged from 2.34 to 5.23. According to the industry distribution chart, Essential Utilities ranks #182 out of 438 companies in the Utilities - Regulated industry, placing it in the top 41.6%.
Is Essential Utilities' 5-Year Yield-on-Cost % too high?
Essential Utilities' current 5-Year Yield-on-Cost % of 4.74 is 46% above median its 10-year median of 3.25. Over the past 10 years, this metric has ranged from a low of 2.34 to a high of 5.23. The Utilities - Regulated industry median 5-Year Yield-on-Cost % is 4.18. Essential Utilities' value of 4.74 is 13.4% above this industry median. Based on the distribution chart, Essential Utilities ranks #182 out of 438 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Essential Utilities has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essential Utilities' 5-Year Yield-on-Cost % compare to AWR and CWT?
According to the Utilities - Regulated industry distribution chart, Essential Utilities ranks #182 out of 438 companies for 5-Year Yield-on-Cost %. This puts Essential Utilities in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 4.18. Essential Utilities' value of 4.74 is 13.4% above this benchmark. Historically, Essential Utilities' own 5-Year Yield-on-Cost % has ranged from 2.34 to 5.23 over the past decade. While the company's 10-year median is 3.25 vs. the industry median of 4.18, Essential Utilities has consistently been above 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 5-Year Yield-on-Cost % for an Utilities - Regulated company?
The median 5-Year Yield-on-Cost % among Utilities - Regulated companies is 4.18, based on 438 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essential Utilities's current 5-Year Yield-on-Cost % of 4.74 is 13.4% above 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Essential Utilities and its competitors. For the Utilities - Regulated industry, the median 5-Year Yield-on-Cost % is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essential Utilities's current 5-Year Yield-on-Cost % is 4.74, which is 46% above median its own 10-year median of 3.25. 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?
Based on GuruFocus' analysis, Essential Utilities (WTRG) is currently considered Fairly Valued. The stock's GF Value™ is $41.93, compared to a current price of $40.04 — trading 4.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 4.74, which is 46% above median its 10-year median of 3.25 and 13.4% above the Utilities - Regulated industry median of 4.18. Essential Utilities' overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Essential Utilities (WTRG), the current 5-Year Yield-on-Cost % is 4.74 as of Aug. 08, 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.
Is Essential Utilities (WTRG) Overvalued in 2026?
Based on GuruFocus' analysis, Essential Utilities stock appears to be undervalued.
The current stock price of $40.04 is trading 4.5% below its estimated GF Value™ of $41.93.
GuruFocus considers Essential Utilities to be Fairly Valued.
Key valuation signals for WTRG:
5-Year Yield-on-Cost %: 4.74 (46% above median its 10-year median of 3.25)
GF Value™: $41.93 vs. price of $40.04 (4.5% below fair value)
Industry Position: 13.4% above the Utilities - Regulated median (#182 of 438)
No single metric tells the full story. See the WTRG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
76GF Score
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