Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
The Company’s common stock is traded on the
NASDAQ Stock Market, LLC, under the symbol MSEX. As of December 31, 2022, there were 1,751 holders of record.
The Company has paid dividends on its common stock
each year since 1912. The payment of future dividends is contingent upon the future earnings of the Company, its financial condition and
other factors deemed relevant by the Board of Directors at its discretion.
If four or more quarterly dividends are in arrears,
the preferred shareholders, as a class, are entitled to elect two members to the Board of Directors in addition to Directors elected by
holders of the common stock. In the event dividends on the preferred stock are in arrears, no dividends may be declared or paid on the
common stock of the Company.
The Company issues shares of its common stock in connection
with its Middlesex Water Company Investment Plan (the Investment Plan), a direct share purchase and dividend reinvestment plan for the
Company’s common stock. Since the inception of the Investment Plan and its predecessor plan, the Company has periodically replenished
the level of authorized shares in the plans. Currently, 0.2 million shares remain registered with the SEC for the Investment Plan and
available for potential issuance to participants. Middlesex has filed a petition with the NJBPU seeking to increase the number of authorized
shares under the Investment Plan by 0.7 million shares. The Company raised approximately $10.3 million through the issuance of shares
under the Investment Plan during 2022.
On March 1, 2023, the Company will begin offering
shares of its common stock for purchase at a 3% discount to participants in the Investment Plan. The discount offering will continue until
200,000 shares are purchased at the discounted price or December 1, 2023, whichever event occurs first. The discount applies
to all common stock purchases made under the Investment Plan, whether by optional cash payment or by dividend reinvestment.
The Company maintains a long-term incentive compensation
plan for certain management employees where awards are made in the form of restricted common stock. Shares issued in connection with this
plan are subject to forfeiture by the employee in the event of termination of employment for any reason within five years of the award,
other than as a result of retirement at normal retirement age, death, disability or change in control. The maximum number of shares authorized
for award under this plan is 0.3 million shares, of which approximately 80% remain available for award.
The Company maintains a stock plan for its independent
members of the Board of Directors as a component of their compensation. In 2022, shares of the Company’s common stock valued at
$0.3 million were granted and issued to the Independent Directors. The maximum number of shares authorized for grant under this plan is
0.1 million. Approximately 46% of the authorized shares remain available for future issuance.
Set forth below is a graph comparing the yearly change
in the cumulative total return (which includes reinvestment of dividends) of a $100 investment for the Company’s common stock, a
peer group of investor-owned water utilities, and the S&P 500 Stock Index for the period of five years commencing December 31, 2017.
The S&P 500 Stock Index measures the stock performance of 500 large companies listed on stock exchanges in the United States.
21
Index
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
Among Middlesex Water Company, the S&P 500 Stock
Index and a Peer Group*
* Peer group includes American States
Water Company, Artesian Resources Corp., California Water Service Group, Global Water Resources Inc, SJW Corp., York Water Company and
Middlesex.
December 31,
2017
2018
2019
2020
2021
2022
Middlesex Water Company
100.00
136.54
165.40
191.52
321.79
213.14
S&P 500 Stock Index
100.00
95.62
125.72
148.85
191.58
156.89
Peer Group
100.00
108.39
134.25
136.58
178.54
161.23
ITEM 6. [RESERVED]
22
Index