Investing

This Dividend King of Kings Has Increased Its Dividend for 70 Consecutive Years. Can That Streak Continue? 

Ian Cooper

Published: March 15, 2025 1:49 pm

For more than 70 years, American States Water (NYSE:AWR) has increased its dividends.

Most recently, it approved a dividend of $0.4655 per share, its 355th consecutive dividend, which is payable on March 3 to shareholders of record as of February 18.

Key Points About This Article 

• For more than 70 years, American States Water (AWR) has increased its dividends. Most recently, it approved a dividend of $0.4655 per share, its 355th consecutive dividend.
• American States is a reliable water and electrical utility company that’s been around since 1929 and has a strong history of solid growth.
• The company is well-positioned for sustainable growth with infrastructure and its contracted services business, ASUS.
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That strong yield has helped American States Water deliver substantial returns.

In fact, since 2015, the stock soared from about $31 to a recent high of $79.22, split-adjusted. Since then, the stock’s average annual shareholder return with reinvested dividends is about 16%, with an average annualized return of 12.6%.

Can that continue?

We believe so.

For one, American States Water is a reliable water and electrical utility company. It’s been around since 1929 and has a strong history of solid growth. Two, the company’s EPS payout ratio is reportedly positioned to be in the high 50% range for this year. Three, American Water could realistically deliver 14% annual returns through 2027.

We also have to consider that a big part of why the stock is so successful at returning capital to shareholders is because it operates in regulated markets. In 2023, it was 80% and 88% of its net income. Those are guaranteed rates of return, which helps give the company insight into cash flows, which then allows it to plan for capex, including dividend payouts.

American States Water is Well-Positioned for Growth

Plus, the company is well-positioned for sustainable growth with infrastructure and its contracted services business, ASUS. According to Seeking Alpha, “American States Water invested $235.5 million in regulated utility infrastructure in 2024, a record high. The contracted services business, ASUS, secured $56.5 million in new capital upgrade awards, also a record, with projects slated for completion through 2027.”

With infrastructure, subsidiary, Golden State Water was just authorized to invest $573.1 million in capital infrastructure between now and 2027. Electric utility subsidiary, Bear Valley Electric received approval for $75.6 million in capital infrastructure investments through 2026.

As also noted by Seeking Alpha, we can take comfort in knowing that “Management’s confidence in navigating challenges such as higher expenses and regulatory complexities remains evident, underscoring a commitment to shareholder value through dividends and operational excellence.”