Core Insights - The article emphasizes the long-term success of investing in high-quality dividend stocks, highlighting their historical outperformance compared to non-payers [2][3] - It discusses the rarity of elite dividend stocks, noting that only a small percentage of companies have consistently paid and increased dividends over extended periods [5][8] Dividend Stock Performance - Research from Hartford Funds and Ned Davis Research indicates that dividend-paying stocks have achieved an average annual return of 9.17%, more than double the 4.27% return of non-payers from 1973 to 2023, while also being less volatile than the S&P 500 [3] Notable Dividend Stocks - Johnson & Johnson has increased its annual dividend for 62 consecutive years and holds a AAA credit rating, making it a safe investment [6] - Procter & Gamble has an even longer streak of 68 years of increasing its annual payout, supported by a diverse portfolio of household brands [7] - Companies like ExxonMobil and Stanley Black & Decker have paid continuous dividends since 1882 and 1876, respectively [8] York Water Company - York Water, a small-cap water utility, has paid dividends since its founding in 1816, boasting a 208-year streak, which is significantly longer than many well-known companies [10][12] - The company services over 300,000 people and operates in a regulated environment, ensuring predictable cash flow due to the necessity of water services [11][13][15] - York Water has increased its annual payout for the last 28 years and is currently valued at 20 times consensus earnings per share for 2025, with a yield of 2.8% [17][18]

Core Points - The York Water Company (YORW) announced a 4% increase in its quarterly dividend, raising it to 21.92 cents per share from 21.08 cents, effective January 15, 2025 [1] - This marks the 616th consecutive dividend payment and the 28th consecutive year of dividend increases, resulting in an annualized dividend of 87.68 cents per share compared to 84.32 cents [2] - The current dividend yield stands at 2.35%, surpassing the Zacks S&P 500 composite average of 1.19% [2] Investment and Growth Strategy - YORW continues to benefit from strategic investments and acquisitions aimed at providing safe and reliable water and wastewater services [3] - In the first nine months of 2024, the company invested $33 million in capital projects, including dam improvements and wastewater treatment plant construction [3][5] - YORW plans to invest an additional $9.7 million in 2024 and nearly $46.1 million in 2025 for infrastructure upgrades and expansions [5] Market Performance - Over the past month, YORW's shares have increased by 1.1%, while the industry has grown by 1.4% [9] - Since November 4, 2024, YORW's stock performance has shown a growth of 7.65% compared to the utility-water supply market's growth of 1.4% [10] Industry Context - Utility companies typically exhibit stable operations and earnings, allowing them to provide regular dividends [7] - Other utility companies, such as Global Water Resources, Entergy Corporation, and American States Water Company, have also raised their dividends recently, indicating a positive trend in the sector [7][8]

Core Viewpoint - York Water (YORW) reported quarterly earnings of $0.41 per share, matching the Zacks Consensus Estimate, but down from $0.53 per share a year ago [1] - The company posted revenues of $19.72 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 3.76% and up from $18.77 million year-over-year [2] Earnings Performance - The earnings surprise for the previous quarter was -22.22%, with actual earnings of $0.35 per share compared to an expected $0.45 [1] - Over the last four quarters, York Water has surpassed consensus EPS estimates two times [1] Revenue Performance - York Water has topped consensus revenue estimates three times over the last four quarters [2] Stock Performance - York Water shares have declined approximately 1.2% year-to-date, contrasting with the S&P 500's gain of 24.3% [3] Future Outlook - The company's earnings outlook will be crucial for stock performance, with current consensus EPS estimates at $0.37 for the coming quarter and $1.43 for the current fiscal year [7] - The Zacks Rank for York Water is currently 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Utility - Water Supply industry is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net income for Q3 2024 was $5,863, a decrease of $1,705 or 22.5% from $7,568 in Q3 2023, primarily due to higher operating expenses and increased income taxes [70]. - Net income for the first nine months of 2024 was $15,183, a decrease of $2,562 or 14.4% from $17,745 in the same period of 2023, due to higher operating expenses and interest on debt [76]. Revenue and Operating Performance - Operating revenues for Q3 2024 increased by $948 or 5.1% to $19,715, driven by a distribution system improvement charge of $131 and an increase in the customer base by 1,062 water customers [71]. - Operating revenues for the first nine months of 2024 increased by $3,158 or 6.0% to $56,093, primarily due to a rate increase effective March 1, 2023 [78]. Operating Expenses - Operating expenses for Q3 2024 rose by $1,326 or 12.8% to $11,660, mainly due to higher depreciation, wages, and wastewater treatment costs [72]. - Operating expenses for the first nine months of 2024 increased by $4,193 or 13.7% to $34,761, driven by higher costs in depreciation, wages, and maintenance [79]. Interest and Debt - Interest on debt for Q3 2024 increased by $393 or 21.2% to $2,243, attributed to higher long-term debt and interest rates on Senior Notes [73]. - Interest on debt for the first nine months of 2024 rose by $1,508 or 29.9% to $6,549, reflecting increased long-term debt and interest rates [80]. - The Company entered into a note purchase agreement for $40,000 aggregate principal amount of senior notes, with net proceeds of approximately $39,833 used to refinance line of credit borrowings [102]. Customer and Asset Acquisitions - The Company signed an agreement on June 27, 2024, to acquire wastewater assets from CMV Sewage Co., expected to add approximately 280 wastewater customers upon completion in the second half of 2025 [86]. - The Company signed an agreement to purchase wastewater collection assets of Margaretta Mobile Home Park, expected to add approximately 65 customers, with closing anticipated in the second half of 2025 [87]. - The Company signed an agreement to acquire wastewater collection and treatment assets of York Haven Sewer Authority, expected to add approximately 230 customers, with closing expected in Q4 2024 [88]. Construction and Funding - The Company invested $32,993 in construction expenditures for the nine months ended September 30, 2024, funded through internally-generated funds and other sources [93]. - Anticipated construction expenditures for the remainder of 2024 are approximately $9,700, primarily funded through internally-generated funds and customer contributions expected to account for 5% to 10% of funding requirements [94]. Internal Funds and Capitalization - The Company generated $20,391 in internally-generated funds during the first nine months of 2024, a decrease from $23,407 in the same period of 2023, primarily due to higher interest and income taxes paid [97]. - Common stockholders' equity as a percentage of total capitalization was 53.2% as of September 30, 2024, down from 54.8% as of December 31, 2023 [98]. - The Company's total long-term debt as a percentage of total capitalization was 46.8% as of September 30, 2024, compared to 45.2% as of December 31, 2023 [103]. Regulatory and Environmental Factors - The Company has a regulatory asset of approximately $1,921 for customer-owned lead service line replacements through September 30, 2024 [115]. - Pennsylvania state officials declared a drought watch for 33 counties, including all four counties in the Company's service territory, potentially impacting future revenues [116].

Financial Results Announcement - The York Water Company announced its third quarter and first nine months 2024 financial results on November 7, 2024[3]. - The press release detailing the financial results is included as Exhibit 99.1 in the Current Report on Form 8-K[2]. Regulatory Information - The report will not be deemed "filed" under the Securities Exchange Act of 1934, nor incorporated by reference in any future filings unless expressly stated[3]. - Matthew E. Poff, Chief Financial Officer, signed the report on behalf of The York Water Company[4].

Core Viewpoint - The York Water Company reported mixed financial results for the third quarter and the first nine months of 2024, with increased operating revenues but decreased net income compared to the same periods in 2023 [2][3]. Financial Performance - Third quarter operating revenues reached $19,715,000, an increase of $948,000 from the previous year, while net income fell to $5,863,000, a decrease of $1,705,000 [2]. - Basic and diluted earnings per share for the third quarter were $0.41, down $0.12 from the same period last year [2]. - For the first nine months of 2024, operating revenues totaled $56,093,000, an increase of $3,158,000, but net income decreased to $15,183,000, down $2,562,000 compared to the first nine months of 2023 [3]. - Basic and diluted earnings per share for the nine-month period were $1.06, a decrease of $0.18 from the previous year [3]. Revenue Drivers - The increase in revenues was primarily attributed to the Distribution System Improvement Charge (DSIC), growth in the customer base, and a rate increase effective March 1, 2023 [3]. - The DSIC is a charge allowed by the Pennsylvania Public Utility Commission for the replacement of aging infrastructure [2]. Expenses and Costs - Higher operation and maintenance expenses, depreciation, and interest on debt offset the increased revenues, along with a lower allowance for funds used during construction (AFUDC) [2][3]. - Income taxes rose due to lower deductions from IRS tangible property regulations [2]. Capital Investments - The company invested $33 million in capital projects during the first nine months of 2024, focusing on infrastructure improvements, including the Lake Williams dam and wastewater treatment plant [4]. - An additional investment of $9.7 million is estimated for 2024, excluding acquisitions, to ensure reliable water supply and proper wastewater handling [4]. Shareholder Returns - Dividends declared per common share for the third quarter were $0.2108, compared to $0.2027 in the previous year, while for the nine-month period, dividends were $0.6324, up from $0.6081 [5].

Core Viewpoint - The article emphasizes the long-term benefits of investing in dividend-paying stocks, highlighting their consistent performance and lower volatility compared to non-dividend stocks over the past decades [3][4]. Dividend Stocks Performance - Dividend stocks have averaged a 9.17% annual return from 1973 to 2023, with 6% less volatility than the S&P 500, while non-dividend stocks only achieved a 4.27% annualized return and were 18% more volatile [4]. Characteristics of Successful Dividend Stocks - Companies that regularly distribute dividends tend to be profitable and provide transparent long-term growth outlooks, making them attractive investments [5]. - Examples of strong dividend stocks include Coca-Cola and Johnson & Johnson, both of which have increased their dividends for 62 consecutive years [6][7]. York Water Company Overview - York Water, a small-cap utility company, has paid continuous dividends since its founding in 1816, boasting a 208-year streak, which is significantly longer than other public companies [11][13]. - The company operates in a regulated environment, ensuring predictable cash flow and stability in its operations [16]. Financial Performance and Growth - In January 2023, York Water received approval to increase rates for 75,000 customers, leading to an 18% revenue increase last year [17]. - Despite a modest yield of 2.2%, York Water's quarterly payout has grown by 164% since 2000, with its share price increasing by 573% during the same period [19].

Core Viewpoint - York Water (YORW) reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.45 per share, representing a -22.22% earnings surprise [1] - The company posted revenues of $18.75 million for the quarter, slightly missing the Zacks Consensus Estimate by 1.32% [2] Financial Performance - Year-over-year earnings decreased from $0.45 per share to $0.35 per share [1] - Revenues for the same quarter last year were $18.77 million, indicating a slight decline [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Stock Performance - York Water shares have increased by approximately 6.6% since the beginning of the year, while the S&P 500 has gained 14.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $19 million, and for the current fiscal year, it is $1.61 on revenues of $74 million [7] - The estimate revisions trend for York Water is mixed, which may change following the recent earnings report [6] Industry Context - The Utility - Water Supply industry is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of York Water may be influenced by the overall outlook of the industry [8]

Financial Results Announcement - The York Water Company announced its second quarter and first six months 2024 financial results on August 2, 2024[3]. - The press release detailing the financial results is included as Exhibit 99.1 in the Current Report on Form 8-K[2]. - The report will not be deemed "filed" under the Securities Exchange Act of 1934, nor incorporated by reference in any future filings[3]. Company Leadership - Matthew E. Poff serves as the Chief Financial Officer of The York Water Company[4].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-34245 THE YORK WATER COMPANY (Exact name of registrant as specified in its charter) Pennsylvania 23-1242500 ...