American States Water Company Announces Regular Common Dividends

Rhea-AI Summary

American States Water Company (AWR) has approved a quarterly dividend of $0.43 per share for its Common Shares, marking the 351st consecutive dividend payment. Shareholders have seen an increase in their calendar year dividend for 69 consecutive years, positioning the company among an exclusive group of NYSE companies. The company aims for a compound annual growth rate in the dividend of over 7% in the long-term, with a quarterly dividend rate growing at a 9.4% compound annual growth rate over the last five years. Dividends will be payable on March 1, 2024, to shareholders of record as of February 20, 2024.

Insights

Financial Analyst

The announcement of American States Water Company's (AWR) 351st consecutive dividend payment is a testament to the company's financial stability and commitment to shareholder returns. A dividend streak of this length is rare and signifies a robust business model. The company's ability to consistently increase dividends for 69 years also suggests a strong and reliable revenue stream, which is a positive indicator for investors looking for stable income.

Furthermore, the commitment to a compound annual growth rate of over 7% in dividends is ambitious, especially in the utility sector where growth is typically more modest. However, AWR's past performance, with a 9.4% growth rate over the last five years, exceeds this target, suggesting effective management and strategic growth initiatives. This could indicate that AWR is well-positioned to handle inflationary pressures and other economic challenges, which is reassuring for long-term investors.

Market Research Analyst

From a market perspective, American States Water Company's consistent dividend increases place it within a niche category of stocks known as 'Dividend Aristocrats.' This status can attract a particular investor demographic focused on reliable dividend income. The company's performance in this area may influence its stock price positively, as it becomes a more attractive option for income-focused portfolios.

Moreover, the utility sector is often considered a defensive investment, especially during volatile market conditions. As investors may seek safe havens, AWR's demonstrated ability to provide consistent and growing dividends could drive demand for its shares. However, it's important to consider the overall yield in relation to the stock price to assess the dividend's attractiveness fully.

Economist

In an economic context, the ability of a utility company like American States Water Company to maintain and increase dividends over an extended period indicates a low elasticity of demand for its services. Even in economic downturns, consumers prioritize water and utility services, which provides the company with a stable cash flow to support such dividends.

Additionally, the dividend policy of AWR reflects the company's confidence in its future cash flows and financial health. A long-term strategy to grow dividends could imply that the company anticipates continued economic stability and possibly growth in its market. However, investors should also be aware of the broader economic conditions, including interest rate changes, which could affect the relative attractiveness of dividend stocks versus fixed-income securities.

SAN DIMAS, Calif.--(BUSINESS WIRE)-- On February 6, 2024, the Board of Directors of American States Water Company (NYSE:AWR) approved a quarterly dividend of $0.43 per share on the Common Shares of the company. This action marks the 351^st consecutive dividend payment by the company. For 69 consecutive years, American States Water Company shareholders have received an increase in their calendar year dividend, 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’s quarterly dividend rate has grown at a compound annual growth rate of 9.4% over the last five years.

Dividends on the Common Shares will be payable on March 1, 2024 to shareholders of record at the close of business on February 20, 2024.

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 264,100 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 24,800 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, wastewater collection, and treatment facilities located on 12 military bases throughout the country under 50-year privatization contracts with the U.S. government.

American States Water Company has paid dividends to shareholders every year since 1931, increasing the dividends received by shareholders each calendar year since 1954. The company has achieved an 8.1% compound annual growth rate in its calendar year dividend payments from 2013 – 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240207556055/en/

Eva G. Tang

Senior Vice President - Finance, Chief Financial

Officer, Corporate Secretary and Treasurer

(909) 394-3600, extension 707

Source: American States Water Company

FAQ

What is the quarterly dividend approved by American States Water Company for its Common Shares?

The quarterly dividend approved is $0.43 per share.

How many consecutive dividend payments has the company made?

The company has made 351 consecutive dividend payments.

What is the compound annual growth rate in the dividend that the company aims for in the long-term?

The company aims for a compound annual growth rate in the dividend of more than 7% over the long-term.

When will the dividends on the Common Shares be payable?

The dividends will be payable on March 1, 2024.

What is the record date for shareholders to be eligible for the dividends?

Shareholders of record at the close of business on February 20, 2024, will be eligible for the dividends.