RGC Resources is transitioning from a stable, dividend-focused utility to a growth story with the launch of the Mountain Valley Pipeline (MVP). RGCO's earnings and cash flows are set to rise as MVP operations contribute real profits, supporting higher dividends and potential stock revaluation. The company's strong regulatory position, monopoly advantage, and history of dividend growth make RGCO attractive for income and growth investors.
RGCO is entering a high cash flow phase from past investments, notably with the Mountain Valley Pipeline now operational, supporting a strong buy rating. Q2 2025 results exceeded expectations, marking a turning point as the company shifts from investment to active cash generation, with improved interest coverage. The regulated business, favorable rate case, and 20-year dividend growth history provide stability, while MVP offers a major new profit stream.
RGC Resources, a small natural gas utility in Virginia, serves 63,400 customers and offers a 3.70% dividend yield, appealing for income-seeking investors. Despite its small size, RGC Resources remains liquid for individual investors, though institutional investors might face challenges due to lower trading volumes. The company's growth prospects include expanding into Franklin County, despite demographic challenges in Roanoke City and County.
Little-known drug manufacturer Regencell Bioscience (NASDAQ: RGC ) saw its shares skyrocket on Tuesday on no apparent catalyst. However, it's possible that the exceptionally distinct business profile — specializing in traditional Chinese medicine (TCM) for the treatment of neurocognitive disorders — caught the attention of speculators.