Recent Buy – NJR

I was looking for a utility to replace PNY when it gets sold via its merger with DUK.  I was leaning towards one out west but some questions were raised regarding the regulatory climate that I need to investigate further.  So meanwhile, I opened a position for NJR in my Wells Fargo DRIP account.

Generally I don’t DRIP much anymore, but this is one holding that provides a discount to market at NJR’s discretion.  So a decent company with the possibility of 2-5% discounts on reinvested dividends makes this one a buy now and one I’ll likely add to once PNY’s merger is complete.


Ticker: NJR

Acquired: 1/15/2016

Cost basis: $33.295

Current Portfolio Status: Hold

Dividend Reinvestment: Y

Dividends paid quarterly in Jan, Apr, Jul, Oct

Shares held on account at Wells Fargo

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution, and retail and wholesale energy services. The company operates through Natural Gas Distribution, Energy Services, Clean Energy Ventures, Midstream, and Home Services and Other segments. The Natural Gas Distribution segment offers regulated retail natural gas services to approximately 512,300 residential and commercial customers in central and northern New Jersey; provides storage management services; and participates in the off-system sales and capacity release markets. The Energy Services segment provides unregulated wholesale energy management services to other energy companies and natural gas producers, as well as maintains and transacts a portfolio of physical assets consisting of natural gas storage and transportation contracts in the United States and Canada. The Clean Energy Ventures segment invests in, owns, and operates distributed power projects, including commercial and residential solar projects located in New Jersey; and onshore wind projects in Montana, Iowa, and Kansas. The Midstream segment invests in natural gas transportation and storage facilities. The Home Services and Other segment offers heating, ventilation, and cooling services; holds and develops commercial real estate properties; and provides solar equipment installation, and plumbing repair and installation services. This segment is also involved in water appliance sales, installation, and servicing activities. The company was founded in 1922 and is based in Wall, New Jersey.


2 thoughts on “Recent Buy – NJR

  1. Thanks for sharing your recent purchase with us. Have to admit I never heard of NJR. I do like the idea of owning utilities in a long term dividend growth portfolio. I know many DGI bloggers do not like the relatively low dividend growth rates though. In my account I hold ED, SO and D in the ute sector.


  2. I have to admit I hadn’t heard of them either until Captain Dividend made his purchase last month. Knowing PNY is going to be pulled later this year spurred me to action otherwise I’d only have WEC left in the sector. I have an order pending for another one (SJI) – also a discounted DRIP (have to love free money). Personally, I’ll take a lower – but more secure – dividend in this environment. Besides, electric utes appear to have natgas utes in their sights right now. Plus the company discount (when applied) is the icing on the cake! Thanks for the visit.


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