American States Water announces 8.3% increase in quarterly dividend
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 31 2025
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Should l Buy AWR?
Dividend Increase Announcement: American States Water Company has approved an 8.3% increase in its Q3 cash dividend, raising it to 50.40 cents per share from 46.55 cents.
Consistent Dividend Payments: This marks the company's 357th consecutive dividend payment and the 71st consecutive year of increasing its calendar year dividend, with payments scheduled for September 3 to shareholders on record as of August 15.
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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.
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- Defensive Stock Recommendations: In the high-inflation environment, we recommend buying four low-beta defensive stocks: Atmos Energy, American States Water, Keurig Dr Pepper, and Entergy, all of which have seen upward revisions in earnings estimates over the past 60 days, indicating solid growth potential.
- Atmos Energy Performance: Atmos Energy has an expected earnings growth rate of 10.5% for the current year, with a 1.2% upward revision in earnings estimates over the last 60 days, serving 3.3 million customers across over 1,400 communities, showcasing a strong market position.
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See More
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- American States Water Overview: American States Water has raised its dividend for 72 consecutive years, currently offering a 2.7% yield and a market cap of $2.9 billion, demonstrating its stability and income potential in uncertain markets.
- Earnings Growth Drivers: EPS is projected to grow from $1.60 to $3.37 between 2015 and 2025, primarily driven by investments in water infrastructure and approved rate increases, ensuring ample room for future dividend growth.
- Coca-Cola's Market Position: Coca-Cola has increased its dividend for 64 years, with a current yield of 2.7% and a market cap of $329 billion, and as the world's largest beverage maker, it generates stable profits from high-margin concentrates and syrups.
- Diversification Strategy: To combat declining soda consumption, Coca-Cola has diversified its portfolio with bottled water, teas, juices, and energy drinks, enhancing its competitive edge and is expected to continue attracting younger consumers.
See More
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- Stable Dividend Growth: American States Water has raised its dividend for 72 consecutive years, currently offering a forward yield of 2.7%, indicating its ability to provide stable income in uncertain market conditions, appealing to safety-seeking investors.
- Strong Earnings Growth: The company's EPS is projected to increase from $1.60 in 2015 to $3.37 by 2025, driven by ongoing investments in water infrastructure and approved rate hikes, showcasing significant growth potential for the future.
- Coca-Cola's Diversification Strategy: Coca-Cola has increased its dividend for 64 years, with a forward yield of 2.7%, and has strengthened its market position and profitability by diversifying its product line to counteract declining beverage consumption globally.
- Resilience Against Risks: Despite challenges such as the pandemic and inflation, Coca-Cola's EPS has grown from $1.67 in 2015 to $3.04 by 2025, demonstrating its stability and attractiveness in turbulent market conditions.
See More
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- Vicious Cycle Index Overview: Moody's Analytics' Vicious Cycle Index (VCI) has accurately predicted 100% of U.S. recessions over the past 80 years without a single false alarm, demonstrating its effectiveness and reliability in economic forecasting.
- Unemployment Rate Indicator: The VCI is based on the Sahm Rule, which requires the three-month average unemployment rate to exceed the 12-month low by 1%, enhancing its accuracy in capturing recessions, especially in the context of declining labor force participation.
- Current Economic Condition: Chief economist Mark Zandi of Moody's Analytics believes that the U.S. economy has already entered a recession, despite the National Bureau of Economic Research not yet confirming it, with the probability of recession rising to 48.6%, surpassing predictions from other organizations.
- Investment Strategy Recommendations: Investors should consider purchasing recession-proof stocks such as Walmart, AbbVie, and American States Water, which tend to perform well during economic downturns, while also maintaining cash reserves to capitalize on potential investment opportunities.
See More
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- Recession Signal: The Vicious Cycle Index (VCI) has accurately predicted all U.S. recessions since 1945 and currently indicates that the U.S. economy is in the early stages of a recession, prompting investors to adjust their strategies based on this critical indicator.
- Unemployment Rate Changes: The VCI improves upon the Sahm Rule by adjusting unemployment data using a five-year moving average of labor force participation, signaling a recession when the average unemployment rate rises more than 1% over the previous 12 months, enhancing its accuracy.
- Investment Strategy Recommendations: With rising recession risks, investors are advised to increase cash positions and consider buying recession-resistant stocks such as Walmart, AbbVie, and American States Water, which are likely to maintain stable dividend payments during economic downturns.
- Declining Market Confidence: Consumer confidence hit a record low in April, and the labor force participation rate fell to 61.9%, indicating that more Americans are giving up on job searches; Moody's Analytics raised the probability of a recession in the next 12 months to 48.6%, surpassing other organizations' forecasts.
See More
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- Top Dividend Stocks: Colgate-Palmolive and American States Water are highlighted as ideal long-term dividend investments, with Colgate-Palmolive increasing its dividend for 63 consecutive years and American States Water for 71 years, showcasing their robust financial performance.
- Colgate-Palmolive Financials: Colgate-Palmolive generated $3.6 billion in free cash flow, comfortably covering its $1.8 billion dividend payout, and its 2.4% dividend yield is nearly double that of the S&P 500, reflecting strong cash flow and market competitiveness.
- American States Water Stability: As a regulated utility with a monopoly over water and electricity in California, American States Water boasts a 2.7% dividend yield and a 58% payout ratio, indicating its earnings are sufficient to support ongoing dividend growth.
See More
