SJW Group Shares Yield Above 3% Driven by Solid Dividend
In trading on Wednesday, shares of SJW Group (Symbol: SJW) were yielding over 3% based on its quarterly dividend, annualized at $1.68. On that day, SJW’s stock price dipped as low as $55.40. Dividends are a crucial consideration for investors, as they historically contribute significantly to the total returns of the stock market. For instance, if you had purchased shares of the iShares Russell 3000 ETF (IWV) on May 31, 2000, at $78.27 per share, you would have seen the price drop to $77.79 by May 31, 2012—a decline of $0.48 or 0.6% over twelve years. However, during that same period, you would have gained $10.77 per share in dividends, resulting in a total return of 13.15%. Even after reinvesting those dividends, this translates to an average annual total return of about 1%. Thus, a sustainable yield above 3% appears quite attractive in comparison.
SJW Group is listed among the Russell 3000, highlighting its status as one of the 3,000 largest companies on U.S. stock markets.
Assessing Dividend Sustainability with Historical Data
It is important to note that dividend amounts can fluctuate, largely depending on a company’s profitability. Reviewing SJW Group’s historical dividend data can provide insights into the likelihood of maintaining the current yield, helping investors gauge whether a 3% annual yield is a reasonable expectation moving forward.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
