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, 2024, there were 1,631 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.
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 70% remain available for future issuance as of December 31, 2024.
The Company maintains a stock plan for its independent
members of the Board of Directors as a component of their compensation. In 2024, shares of the Company’s common stock valued at
$0.4 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 34% of the authorized shares remain available for future issuance as of December 31, 2024.
The conversion feature of the Company’s
no par $7.00 Series Cumulative and Convertible Preferred Stock allows each security holder to convert one convertible preferred share
for twelve shares of the Company's common stock. In 2024, 4,275 shares of the Company’s no par $7.00 Series Cumulative and Convertible
Preferred Stock were converted into 51,300 shares (approximately $0.4 million) of the Company’s common stock.
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, 2019.
The S&P 500 Stock Index measures the stock performance of 500 large companies listed on stock exchanges in the United States.
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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.
2019
2020
2021
2022
2023
2024
Middlesex Water Company
100.00
115.79
194.55
128.86
109.30
89.61
S&P 500 Stock Index
100.00
118.40
152.39
124.79
157.59
197.02
Peer Group
100.00
101.73
132.98
120.09
103.25
91.21
ITEM 6. [RESERVED]
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