American States Water Company Announces 9% Increase in Quarterly Dividend

Rhea-AI Summary

American States Water Company (NYSE:AWR) announced a dividend increase from $0.335 to $0.365 per share, effective September 1, 2021, marking a 9% rise in the annualized dividend rate to $1.46. This is the 341^st consecutive dividend payment, reflecting a consistent 67-year record of annual increases. The company aims for a compound annual growth rate of over 7% in dividends, having achieved nearly 10% from 2011 to 2021. The Board's decision reinforces their commitment to sustainable earnings and shareholder returns.

Positive

• 9% increase in quarterly dividends boosts annualized rate to $1.46.
• 341st consecutive dividend payment demonstrates strong commitment to shareholders.
• 67 years of consecutive dividend increases positions AWR among elite dividend stocks.
• Company aims for long-term dividend growth of over 7%.

Negative

• None.

On July 27, 2021, the Board of Directors of American States Water Company (NYSE:AWR) approved an increase in the company’s third quarter cash dividend from $0.335 per share to $0.365 per share on the common shares of the company. The annualized dividend rate after this increase is $1.46 per share, which represents a 9% increase from the current annualized dividend rate of $1.34 per share. This action marks the 341^st consecutive dividend payment by the company. American States Water Company has paid dividends every year since 1931, increasing the dividends received by shareholders each calendar year for 67 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result. The company’s current policy is to achieve a compound annual growth rate in the dividend of more than 7% over the long-term. The company has achieved a nearly 10% compound annual growth rate in its calendar year dividend payments from 2011 – 2021.

“This sizable dividend increase confirms the Board’s commitment to long-term, sustainable earnings growth, as well as extending the company’s long-term track record of returning cash to shareholders,” said Robert J. Sprowls, President and CEO of American States Water Company. “Achieving strong and consistent financial results along with providing a growing dividend allows the company to continue to attract capital to make necessary investments in the utility infrastructure for the communities and military bases that we serve, and return value to our shareholders.”

Dividends on the common shares will be payable on September 1, 2021 to shareholders of record at the close of business on August 16, 2021.

Forward-Looking Statements
Certain matters discussed in this news release with regard to the company’s expectations may be forward-looking statements that involve risks and uncertainties. The assumptions and risk factors that could cause actual results to differ materially include those described in the company’s most recent Form 10-Q and Form 10-K filed with the Securities and Exchange Commission.

About American States Water Company
American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States Utility Services, Inc., serving over one million people in nine states. Through its water utility subsidiary, Golden State Water Company, the company provides water service to approximately 262,000 customer connections located within more than 80 communities in Northern, Coastal and Southern California. Through its electric utility subsidiary, Bear Valley Electric Service, Inc., the company distributes electricity to approximately 24,500 customer connections in the City of Big Bear Lake and surrounding areas in San Bernardino County, California. Through its contracted services subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and construction management services for water distribution and wastewater collection and treatment facilities located on 11 military bases throughout the country under 50-year privatization contracts with the U.S. government.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005322/en/

FAQ

What is the new dividend amount for AWR shareholders?

The new dividend amount is $0.365 per share.

When will the dividend for AWR be paid?

Dividends will be payable on September 1, 2021.

What is AWR's history of dividend payments?

AWR has paid dividends every year since 1931, increasing them for 67 consecutive years.

What is the annualized dividend rate after the increase?

The annualized dividend rate after the increase is $1.46 per share.

How does AWR plan to grow its dividends in the future?

The company aims for a compound annual growth rate in dividends of over 7%.