Essential Utilities said its board approved a 5.25% increase to the company's quarterly dividend, to 36.06 cents per share from 34.26 cents.

The new dividend, $1.44 on an annual basis, will be payable on Sept. 1 to shareholders of record on Aug. 11.

Based on the most recent closing share price of $40.70 for the company's stock, the new dividend represents a yield of 3.5%.

In July of last year, the company raised its quarterly dividend to 34.26 cents per share from 32.55 cents.