Dividend King In Focus: American States Water

American States Water (AWR) is a water utility operating in California. The company operates under the name ‘Golden State Water Company’. It serves ~261,000 water customers and ~24,000 electric customers.

The company also operates provides unregulated water utility services business to military bases. American States Water typically secures 50 year service contracts with these bases.

The image below shows the geographic locations of both the companies Golden States Water Company utility operations in California, and its military business locations across the United States.

Source:  American States Water August 2016 Investor Presentation

American States Water has a long corporate history. The company was founded in 1929. Today, American States Water has a market cap of $1.5 billion.

American States Water has been shareholder friendly for a long time. The company has paid dividends every year since 1931. It has paid increasing dividends every year… for 61 years.

The company’s dividend history qualifies it to be a Dividend Aristocrat twice over. American States Water is a Dividend King; a select group of just 18 stocks with 50+ consecutive years of dividend increases. You can see all 18 Dividend Kings analyzed here.

Keep reading this article to learn more about the investment prospects of American States Water.

Current Events

American States Water’s earnings-per-share grew 9.8% in its most recent quarter (8/3/16). Earnings-per-share grew from $0.41 in the same quarter a year ago to $0.45 this quarter.

The company’s water utility business was responsible for $0.03 of the $0.04 change in earnings-per-share. The military business accounted for the other $0.01 increase.

In addition, the company recently announced (7/13/16) that it signed a 50 year contract to operate and maintain water and wastewater systems at Elgin Air Force Base in Florida. The contract is estimated to have a value of $510 million over 50 years, or $10.2 million a year. A $10.2 million revenue boost is growth of 2.2% for the company at current revenue levels.

American States Water’s recent events show continued solid results for the company. Utilities that are able to grow significantly faster than inflation are the exception, not the rule. American States Water has been an exception for a long time…

Growth Prospects