California Water Service Group Board of Directors Declares 318th Consecutive Quarterly Dividend

Rhea-AI Summary

California Water Service Group (NYSE: CWT) has declared its 318th consecutive quarterly dividend of $0.28 per common share. The dividend will be payable on August 23, 2024 to stockholders of record as of the close of business on August 12, 2024. This announcement demonstrates the company's consistent commitment to providing returns to its shareholders.

CWT is the parent company of regulated utilities serving over 2.1 million people across five states: California, Hawaii, New Mexico, Washington, and Texas. The company provides both regulated and non-regulated water and wastewater services through its subsidiaries. This diverse portfolio and long-standing dividend history highlight CWT's stability in the utility sector.

Positive

• Declared 318th consecutive quarterly dividend, showcasing long-term financial stability
• Consistent dividend payout of $0.28 per common share
• Serves over 2.1 million people across five states, indicating a broad customer base
• Diversified portfolio of regulated and non-regulated water and wastewater services

Negative

• None.

Insights

Financial Analyst

California Water Service Group's announcement of its 318th consecutive quarterly dividend underscores the company's commitment to consistent shareholder returns. The $0.28 per common share dividend, while not representing an increase, maintains the company's track record of stable payouts. This consistency is particularly noteworthy in the utilities sector, where investors often seek reliable income streams.

The dividend yield, based on the current stock price, hovers around 3%, which is in line with industry averages. This yield, combined with the company's long history of payments, makes CWT an attractive option for income-focused investors, especially those looking for stability in uncertain economic times.

However, it's important to note that the lack of dividend growth might be a concern for some investors, particularly in an inflationary environment. The company's ability to maintain this dividend level while serving over 2.1 million people across five states suggests a stable financial position, but also raises questions about potential for future dividend increases or reinvestment in infrastructure.

From a financial perspective, the consistent dividend payout indicates strong cash flow management, but investors should keep an eye on the payout ratio and the company's capital expenditure needs, especially given the critical nature of water infrastructure and potential regulatory pressures in the states where it operates.

Utility Sector Specialist

The continuation of California Water Service Group's dividend streak is a testament to the stability inherent in the water utility sector. Water services, being essential, tend to provide steady cash flows regardless of economic conditions, which supports consistent dividend payments.

However, the water utility industry faces unique challenges and opportunities that investors should consider:

• Infrastructure Investment: Aging water infrastructure across the U.S. necessitates significant capital expenditures. CWT's ability to maintain its dividend while potentially increasing infrastructure spending will be important to watch.
• Regulatory Environment: As a multi-state operator, CWT must navigate varying regulatory landscapes. This diversification can be both a strength and a challenge, potentially impacting future rate cases and profitability.
• Water Scarcity: With operations in drought-prone areas like California, the company's water resource management strategies are critical. Successful conservation efforts and technology adoption could provide a competitive edge.
• Expansion Opportunities: The fragmented nature of the U.S. water utility market presents potential for acquisitions and organic growth, which could drive future value for shareholders.

While the consistent dividend is positive, investors should also consider the company's growth strategies and how they balance shareholder returns with necessary investments in an evolving industry landscape.

SAN JOSE, Calif., July 31, 2024 (GLOBE NEWSWIRE) -- At its meeting on July 31, 2024, the California Water Service Group (NYSE: CWT) Board of Directors declared the company's 318th consecutive quarterly dividend in the amount of $0.28 per common share. It will be payable on August 23, 2024 to stockholders of record as of the close of business on August 12, 2024.

California Water Service Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas. California Water Service Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.

This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management’s beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results to be different than those expected or anticipated include but are not limited to those described under the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K, as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact
James P. Lynch
408-367-8200 (analysts)

Shannon Dean
408-367-8243 (media)

FAQ

What is the amount of California Water Service Group's (CWT) latest quarterly dividend?

California Water Service Group (CWT) has declared a quarterly dividend of $0.28 per common share.

When will CWT's latest dividend be payable to stockholders?

The dividend will be payable on August 23, 2024 to stockholders of record as of the close of business on August 12, 2024.

How many consecutive quarterly dividends has CWT declared?

CWT has declared its 318th consecutive quarterly dividend, demonstrating a long history of consistent dividend payments.

In which states does California Water Service Group operate?

California Water Service Group operates in California, Hawaii, New Mexico, Washington, and Texas through its various subsidiaries.