American States Water (NYSE: AWR) increased its dividend by 8.2% in the prior month, marking the continuation of a 72-year streak of consecutive annual dividend raises. The company retained its standing as one of fewer than 60 publicly traded corporations with at least 50 years of uninterrupted dividend growth. It has also maintained a record of paying 361 consecutive quarterly dividends.
The water utility operates with less public recognition than other prominent Dividend Kings such as Coca-Cola or Johnson & Johnson, partly due to confusion with American Water Works, a larger competitor. American States Water serves approximately 1 million customers across 10 states through its Golden State Water Company and Bear Valley Electric Services divisions, both of which operate in California. The company also maintains a presence in the military sector through American States Utility Services, which operates water distribution, wastewater collection, and treatment systems at 12 military bases under long-term contracts.
The company’s growth strategy centers on capital investments to meet rising customer demand for water and electricity services, which support applications for regulatory-approved rate increases. The firm indicated plans to invest between $185 million and $220 million during the year to accommodate continued demand growth. Additionally, the company has pursued acquisitions of water systems, including an agreement to purchase a new California water system for nearly $5.3 million earlier in the year.
Over the past decade, American States Water achieved dividend growth at a compound annual rate of 8.7%, contributing to annualized total returns of 10.4%. The company maintained a current yield of approximately 2.5% and targeted compound annual dividend growth exceeding 7% moving forward.
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