Is RGCO's EPS growth sustainable beyond 2025?

**RGC Resources' EPS growth appears to be sustainable beyond 2025**, based on several key indicators: 1. **Consistent Dividend History**: RGC Resources has increased its dividend every year for the last 21 years, demonstrating a commitment to returning value to shareholders. This consistency suggests a stable and sustainable earnings base, which is a positive sign for future EPS growth. 2. **Stable Financial Performance**: The company's financial performance has been stable, with a healthy increase in total assets from $296.45 million in 2023 to $313.36 million in 2024. This investment in utility infrastructure and other assets indicates a strong operational foundation, which is likely to support EPS growth. 3. **Strategic Investments**: Virtu Financial LLC's strategic investment in RGC Resources in 2023 highlights confidence in the company's growth prospects. This kind of investment can often lead to increased operational efficiency and revenue growth, which are essential for sustaining EPS growth. 4. **Market Position and Growth Prospects**: RGC Resources operates in the Gas Utilities industry, which is essential for customer needs. The company's extensive transmission and distribution pipeline network and its position in the local energy landscape of Roanoke, Virginia, provide a stable revenue stream. The demand for natural gas is likely to remain steady, supporting EPS growth. 5. **Analyst Expectations**: Equities analysts expect RGC Resources to earn $1.29 per share next year, which means the company should continue to be able to cover its $0.83 annual dividend with an expected future payout ratio of 64.3%. This indicates a sustainable dividend and EPS growth trajectory. In conclusion, RGC Resources' EPS growth appears to be sustainable beyond 2025 due to the company's consistent dividend history, stable financial performance, strategic investments, strong market position, and positive analyst expectations.