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  "documentTitle": "Essential Utilities, Inc. (WTRG)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-03-08 00:00:00",
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      "text": "WTRG places an emphasis on its dividend payment history, claiming that it enhances shareholder value and referencing itself as a \"dividend achiever\". It also positions itself as a growth company. Its policy is to target a dividend payout ratio no higher than 65% of net income. However, Spruce Point believes that its dividend policy is flawed because of WTRG's large growth capital expenditure (\"capex\") requirements and commitments to acquisitions. As such, we believe the appropriate policy is to pay a dividend commensurate with its free cash flow after both capex and acquisition obligations.",
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      "kind": "callout",
      "text": "Spruce Point believes that its dividend policy is flawed because of WTRG's large growth capital expenditure (\"capex\") requirements and commitments to acquisitions.",
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      "text": "Dividends Per Share (Annualized) 2017-2022",
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      "text": "Dividend Rate 1996-2000",
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      "text": "Dividend Highlights: Dividends paid for 56 consecutive years; 5-for-4 stock split; 10 cash dividend increases in last 9 years; 3 stock splits in last 5 years.",
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      "text": "dividend payout ratio: 65%",
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      "kind": "paragraph",
      "text": "2011 was another successful year for Aqua America... Aqua America's Board of Directors increased the quarterly cash dividend... Aqua America was once again cited as a \"dividend achiever\" by Mergent...",
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      "kind": "quote",
      "text": "We have paid dividends consecutively for 76 years, and our Board of Directors recognizes the value that our common shareholders place on both our historical payment record and on our future anticipated dividend payments",
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      "text": "\"We have paid dividends consecutively for 76 years, and our Board of Directors recognizes the value that our common shareholders place on both our historical payment record and on our future anticipated dividend payments\" — Essential Utilities",
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      "kind": "source-note",
      "text": "Source: PSC, Aqua America and Essential Utilities Annual Reports. Note: Red emphasis Spruce Point",
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      "kind": "title",
      "text": "WTRG's Dividend Propaganda And Flawed Policy",
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