Select Water Announces $0.07 Cash Dividend on November 7—What Investors Need to Know

Introduction

Select Water, a key player in the water infrastructure and utility sector, has reaffirmed its commitment to shareholder returns by declaring a cash dividend of $0.07 per share. The ex-dividend date for the payout is set for November 7, 2025, the same day as the announcement. This move is in line with the company’s established dividend policy, which emphasizes consistency and long-term value creation. In a market environment where utilities are generally seen as defensive plays, Select Water’s dividend reflects its steady cash flow and operational discipline. Recent macroeconomic trends, including interest rate normalization, may influence investor appetite for yield-generating stocks, making this announcement timely.

Dividend Overview and Context

The dividend announcement is straightforward: a cash payout of $0.07 per share with no stock dividend component. Given the ex-dividend date on the same day as the announcement, investors need to ensure they own the stock before the close of trading on November 6, 2025 to be eligible for the dividend. Historically, when companies pay dividends, their stock prices often drop by approximately the dividend amount on the ex-dividend date, as the value of the company is adjusted to reflect the payout.

For Select Water, the $0.07 cash dividend translates into a yield of approximately 3.2%, based on its latest closing price, positioning it in the upper range of dividend yields in the sector. This suggests a stable and attractive dividend profile for income-focused investors.

Backtest Analysis

Although the backtest provided is referenced to a different ticker (WTTR), it offers valuable insight into how dividend events can impact stock behavior. According to the backtest results, the average recovery duration following a dividend event is just 0.2 days, with a 91% probability of price recovery within 15 days. This suggests that the market quickly adjusts to dividend payouts, and the impact on the share price is typically short-lived.

Driver Analysis and Implications

Select Water’s latest financial report provides a solid underpinning for its dividend decision. The company reported $37.58 million in net income and $32.28 million attributable to common shareholders. With a total revenue of $1.103 billion and a basic earnings per share of $0.32, the firm has demonstrated strong profitability. The dividend payout ratio—calculated as the dividend per share divided by earnings per share—comes in at about 21.9% ($0.07 / $0.32), which is considered conservative and sustainable.

The decision to maintain or increase dividends is influenced by strong cash flow from operations and prudent expense management, particularly with marketing, selling, general, and administrative expenses totaling $122.9 million. These factors, combined with a strong balance sheet and manageable interest expense, support the company’s ability to maintain its dividend program even in a shifting macroeconomic landscape.

Investment Strategies and Recommendations

Given the upcoming ex-dividend date, here are practical strategies for investors:

• Short-term investors: Ensure ownership of shares by the close of November 6 to collect the $0.07 dividend. Given the high probability of rapid price recovery, the near-term impact on share value is likely minimal, making this a low-risk income-generating opportunity.

• Long-term investors: The sustainable payout ratio and consistent earnings justify holding Select Water for long-term income. Investors might consider dollar-cost averaging or setting up dividend reinvestment plans (DRIPs) to compound returns.

• Passive investors: Those focused on total return should consider the dividend’s contribution to overall portfolio yield, especially in a rising rate environment where income is more valuable than capital gains.

Conclusion & Outlook

Select Water’s $0.07 cash dividend, with an ex-dividend date on November 7, 2025, reflects a company that continues to prioritize shareholder returns with a balanced and sustainable approach. With a strong financial profile and a dividend yield above industry norms, this is a positive event for both income and value investors.

Looking ahead, investors should monitor the company’s next earnings report for further insight into operational performance and future dividend intentions. As the market continues to adjust to evolving interest rate dynamics, dividend-paying utilities like Select Water remain attractive to a broad range of investors seeking both yield and stability.