dividend growth with a 45–50% earnings payout target supports ~13% upside.
CPK’s dividend growth durability looks supported by disciplined payout targeting despite negative free-cash-flow payout from high capex.
Chesapeake Utilities raised its dividend 7.3%, and the model emphasizes that utilities often show negative free-cash-flow payout due to heavy capital expenditures. The key support is a stated 45–50% dividend payout target on an earnings basis, and the dividend discount model’s assumption of 6.5% growth implies about 13% upside from current prices.
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