Growing Dividends for 58 Years
Many yield hunters are focused on the dividend yield but smart income investors know that what you really want is a company that can grow its dividend year in year for the long term, notes Charles Carlson of DRIP Investor.
Dividend growth should be a factor every investor considers when investing in dividend stocks. And few companies have a record of dividend growth as impressive as American States Water (AWR).
The water utility has boosted its dividend for 58 consecutive years, the latest being a hefty 27% jump in the payout on September 1.
American States Water shareholders haven’t had to settle for just dividends to generate returns on investment. Indeed, the stock has performed well of late, and is trading at its highest level since 2007. Water companies offer a different way to play the utility sector, and American States Water, yielding over 3%, provides a quality play in the group.
Headquartered in San Dimas, California, American States Water is the parent of Golden State Water Company, a provider of water services to approximately 256,000 customers.
The company also has a small electricity business, providing electricity services to over 23,000 customers in the Big Bear recreational area of California. The company’s contracted services subsidiary, American States Utility Services (ASUS), provides operations, maintenance, and construction-management services for water and wastewater systems located on military bases throughout the country.
The company is coming off a solid second quarter.