Covered, compounding — at a fuller payout. A 3.43% yield on a 73.84% payout is covered, but fuller than a low-payout payer: $0.9525 a quarter, declared Oct. 15, 2026 for the 337th consecutive quarterly payment, dating back to 1942, with 23 consecutive years of increases. The 2026 earnings guidance of $5.51–$5.61 a share frames the $3.81 indicated dividend as a regulated-utility payout, not a stretch.
Key risk: Regulated capital funding — a large capital program funded with debt and equity (debt to EBITDA near 5.8×) means rate-case outcomes and interest costs, not customer counts, are what could squeeze the payout first.
Changes if: The payout pushes well past ~74%, or 2026 earnings guidance is cut below $5.51. Cash coverage through the regulated plan, not the headline yield, is the tripwire.
- !Payout-coverage check: 73.84% of trailing earnings — the $3.81 indicated dividend is covered, but leaves less retained than a lower-payout utility, so earnings guidance has to hold.
- ✓Yield check: 3.43% indicated — $0.9525/qtr × 4 at the $111.09 close on Oct. 23, 2026. Real, earned yield for a single stock, not a special or a return of capital.
- ✓Dividend growth check: 23 consecutive years of increases, averaging about 7.13% a year over five years; the latest declaration extends a quarterly streak back to 1942.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.