A Lifetime of Passive Income Is Hiding in Plain Sight With This ETF and These 2 No-Brainer Dividend Kings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 04 2024
0mins
Should l Buy AWR?
Source: NASDAQ.COM
Stock Market Performance: The S&P 500 and Nasdaq Composite have both risen over 20% in 2024, but new investors may find it challenging to enter the market without overpaying; however, there are still valuable dividend-paying stocks like PepsiCo and American States Water available.
Investment Opportunities: PepsiCo is highlighted for its reliable dividends despite recent underperformance, while American States Water boasts a long history of dividend increases and stable earnings growth, making them attractive options for passive income. Additionally, the Global X SuperDividend ETF offers diversification in high-yield equities with a current yield of 6.1%.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AWR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AWR
About AWR
American States Water Company is a holding company. Its segments include water, electric and contracted services. Within the segments, the Company has three principal business units: water and electric service utility operations conducted through its regulated utilities, Golden State Water Company (GSWC) and Bear Valley Electric Service, Inc. (BVES), respectively, and contracted services conducted through American States Utility Services, Inc. (ASUS) and its subsidiaries. GSWC is a public water utility engaged in the purchase, production, distribution and sale of water in 11 counties in the state of California and provides wastewater collection and treatment services. BVES is a public electric utility that distributes electricity in several San Bernardino County Mountain communities in California. ASUS operates, maintains and performs construction activities (including renewal and replacement capital work) on water and/or wastewater systems at various United States military bases.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
American States Water to Announce Q1 Earnings on May 6
- Earnings Announcement: American States Water (AWR) is set to release its Q1 2023 earnings on May 6 after market close, with consensus EPS estimates at $0.77 and revenue expectations of $157.02 million, reflecting a 6.1% year-over-year growth, which will provide critical insights into the company's financial health.
- Historical Performance: Over the past year, AWR has exceeded EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a level of stability and reliability in its financial performance that may bolster investor confidence.
- Dividend Declaration: AWR has declared a dividend of $0.504 per share, which not only provides shareholders with a steady cash flow but may also attract income-seeking investors, thereby enhancing the stock's appeal in the market.
- Market Environment Analysis: As the Colorado River crisis deepens, Western states are looking into desalination deals, which could present new business opportunities for AWR, particularly in water resource management and supply, further driving the company's growth potential.
See More
AWR Q1 2026 Earnings Call Transcript
See More
American States Water Q1 Earnings Report
- Earnings Performance: American States Water reported Q1 GAAP EPS of $0.76, missing expectations by $0.01, indicating slightly lower profitability than market forecasts, which may affect investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $169.19 million, a 14.3% year-over-year increase, exceeding market expectations by $12.17 million, demonstrating sustained demand in the water services sector and enhancing future growth potential.
- Contracted Services Contribution: AWR's contracted services business is projected to contribute between $0.63 and $0.67 per share for the full year 2026, indicating stability in long-term contracts that could bolster future profitability.
- Dividend Declaration: American States Water declared a dividend of $0.504 per share, reflecting the company's commitment to shareholder returns, which may attract investors seeking stable income.
See More
American States Water Company Reports 8.6% EPS Growth in Q1 2026
- Earnings Growth: American States Water Company reported a diluted EPS of $0.76 for Q1 2026, an 8.6% increase from $0.70 in Q1 2025, primarily driven by new customer rate increases approved by the California Public Utilities Commission and higher construction activities, enhancing profitability in its water and electric utility segments.
- Capital Investment Plans: The company is authorized to spend approximately $650 million in capital investments as part of its utility general rate cases, with an expected investment of $185 to $225 million in 2026, which will further strengthen its infrastructure and service capabilities to support future business growth.
- Contracted Services Contribution: The contracted services segment is expected to contribute between $0.63 and $0.67 per share for the full year of 2026, reflecting increased construction activities and management fee revenues, highlighting the segment's significance in the company's overall profitability.
- Dividend Growth: The Board approved a second-quarter dividend of $0.5040 per share, marking 71 consecutive years of dividend payments since 1931, with a compound annual growth rate of 8.5% over the past five years, demonstrating the company's commitment to shareholder returns.
See More
American States Water Declares Quarterly Dividend of $0.504
- Stable Quarterly Dividend: American States Water has declared a quarterly dividend of $0.504 per share, consistent with previous quarters, indicating the company's stable profitability and likely attracting income-focused investors.
- Dividend Payment Timeline: The dividend will be payable on June 2, with a record date of May 18 and an ex-dividend date also on May 18, ensuring shareholders receive timely returns and bolstering investor confidence.
- Capital Expenditure Growth: The company projects utility capital expenditures of $185 million to $225 million in 2026, reflecting a proactive stance on infrastructure investment that supports future growth and service expansion.
- Robust Growth Expectations: With an anticipated rate base CAGR of 11.3%, the company demonstrates its ability to maintain strong financial performance amid market challenges, further solidifying its position in the industry.
See More
Utility Stocks Transforming into Growth Opportunities Amid AI Surge
- American States Water's Strong Performance: American States Water has increased its dividend for 71 consecutive years while serving over 1 million customers, boasting a market cap of $3.1 billion; despite a modest 2.5% yield, its goal of 7% annual growth positions it for steady returns in the coming years.
- Constellation Energy Group's AI Catalyst: Constellation Energy Group, owning the largest fleet of nuclear facilities in the U.S., benefits from the rising electricity demand driven by AI data centers, with forecasts suggesting annualized earnings growth of around 20%, indicating strong long-term growth potential despite a current P/E ratio of 26.
- NextEra Energy's Green Transition: NextEra Energy is building renewable power plants across the U.S. through its NextEra Energy Resources unit, with anticipated annualized earnings growth of about 8% through 2035, supporting its stock price at a mid-20s forward P/E multiple and continued dividend growth.
- Transformation in Utility Sector: The rise of AI technology is shifting utility companies from traditional steady income to growth-oriented investments, capturing the attention of younger investors and potentially altering portfolio compositions in the future.
See More
American States Water to Announce Q1 Earnings on May 6
- Earnings Announcement: American States Water (AWR) is set to release its Q1 2023 earnings on May 6 after market close, with consensus EPS estimates at $0.77 and revenue expectations of $157.02 million, reflecting a 6.1% year-over-year growth, which will provide critical insights into the company's financial health.
- Historical Performance: Over the past year, AWR has exceeded EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a level of stability and reliability in its financial performance that may bolster investor confidence.
- Dividend Declaration: AWR has declared a dividend of $0.504 per share, which not only provides shareholders with a steady cash flow but may also attract income-seeking investors, thereby enhancing the stock's appeal in the market.
- Market Environment Analysis: As the Colorado River crisis deepens, Western states are looking into desalination deals, which could present new business opportunities for AWR, particularly in water resource management and supply, further driving the company's growth potential.
See More
AWR Q1 2026 Earnings Call Transcript
See More
American States Water Q1 Earnings Report
- Earnings Performance: American States Water reported Q1 GAAP EPS of $0.76, missing expectations by $0.01, indicating slightly lower profitability than market forecasts, which may affect investor confidence.
- Revenue Growth: The company achieved Q1 revenue of $169.19 million, a 14.3% year-over-year increase, exceeding market expectations by $12.17 million, demonstrating sustained demand in the water services sector and enhancing future growth potential.
- Contracted Services Contribution: AWR's contracted services business is projected to contribute between $0.63 and $0.67 per share for the full year 2026, indicating stability in long-term contracts that could bolster future profitability.
- Dividend Declaration: American States Water declared a dividend of $0.504 per share, reflecting the company's commitment to shareholder returns, which may attract investors seeking stable income.
See More
American States Water Company Reports 8.6% EPS Growth in Q1 2026
- Earnings Growth: American States Water Company reported a diluted EPS of $0.76 for Q1 2026, an 8.6% increase from $0.70 in Q1 2025, primarily driven by new customer rate increases approved by the California Public Utilities Commission and higher construction activities, enhancing profitability in its water and electric utility segments.
- Capital Investment Plans: The company is authorized to spend approximately $650 million in capital investments as part of its utility general rate cases, with an expected investment of $185 to $225 million in 2026, which will further strengthen its infrastructure and service capabilities to support future business growth.
- Contracted Services Contribution: The contracted services segment is expected to contribute between $0.63 and $0.67 per share for the full year of 2026, reflecting increased construction activities and management fee revenues, highlighting the segment's significance in the company's overall profitability.
- Dividend Growth: The Board approved a second-quarter dividend of $0.5040 per share, marking 71 consecutive years of dividend payments since 1931, with a compound annual growth rate of 8.5% over the past five years, demonstrating the company's commitment to shareholder returns.
See More
American States Water Declares Quarterly Dividend of $0.504
- Stable Quarterly Dividend: American States Water has declared a quarterly dividend of $0.504 per share, consistent with previous quarters, indicating the company's stable profitability and likely attracting income-focused investors.
- Dividend Payment Timeline: The dividend will be payable on June 2, with a record date of May 18 and an ex-dividend date also on May 18, ensuring shareholders receive timely returns and bolstering investor confidence.
- Capital Expenditure Growth: The company projects utility capital expenditures of $185 million to $225 million in 2026, reflecting a proactive stance on infrastructure investment that supports future growth and service expansion.
- Robust Growth Expectations: With an anticipated rate base CAGR of 11.3%, the company demonstrates its ability to maintain strong financial performance amid market challenges, further solidifying its position in the industry.
See More
Utility Stocks Transforming into Growth Opportunities Amid AI Surge
- American States Water's Strong Performance: American States Water has increased its dividend for 71 consecutive years while serving over 1 million customers, boasting a market cap of $3.1 billion; despite a modest 2.5% yield, its goal of 7% annual growth positions it for steady returns in the coming years.
- Constellation Energy Group's AI Catalyst: Constellation Energy Group, owning the largest fleet of nuclear facilities in the U.S., benefits from the rising electricity demand driven by AI data centers, with forecasts suggesting annualized earnings growth of around 20%, indicating strong long-term growth potential despite a current P/E ratio of 26.
- NextEra Energy's Green Transition: NextEra Energy is building renewable power plants across the U.S. through its NextEra Energy Resources unit, with anticipated annualized earnings growth of about 8% through 2035, supporting its stock price at a mid-20s forward P/E multiple and continued dividend growth.
- Transformation in Utility Sector: The rise of AI technology is shifting utility companies from traditional steady income to growth-oriented investments, capturing the attention of younger investors and potentially altering portfolio compositions in the future.
See More
