■ Analysis · August 24, 2026
American States Water Extends Dividend Growth Streak to 72 Years
American States Water (AWR) has raised its dividend for 72 consecutive years, making it one of the longest-running Dividend Kings. The utility's steady cash flow and growth investments support its consistent payout increases.
Dividend Growth Milestone
American States Water (AWR) recently increased its dividend by 8.2%, extending its streak of annual dividend hikes to 72 years. This achievement places the company among the top tier of Dividend Kings, a group of fewer than 60 companies with at least 50 years of consecutive dividend growth. The utility has also paid 361 consecutive quarterly dividends, underscoring its reliability.
Business Profile
Unlike more recognizable Dividend Kings such as Coca-Cola or Johnson & Johnson, American States Water operates in the regulated water and electricity sectors. It serves approximately 1 million customers across 10 states through its subsidiaries Golden State Water Company and Bear Valley Electric Services, which provide regulated water and electricity in California. Additionally, American States Utility Services manages water and wastewater systems at 12 military bases under long-term contracts. These operations generate stable, predictable cash flows.
The company's growth strategy involves investing in infrastructure to meet rising demand and acquiring new water systems. For instance, it plans to invest between $185 million and $220 million this year to support demand growth, and it recently agreed to purchase a California water system for nearly $5.3 million. These investments are expected to drive steady earnings growth, which in turn supports dividend increases.
Financial Performance
Over the past decade, American States Water has grown its dividend at a compound annual rate of 8.7%. This consistent growth has contributed to a 10.4% annualized total return over the same period. The stock currently yields approximately 2.5%, and the company targets more than 7% compound annual dividend growth going forward.
Despite its impressive track record, American States Water remains relatively under the radar compared to larger utilities like American Water Works, which serves over 14 million customers. However, its long history of dividend growth and stable business model make it a notable income stock.
What it means for income investors
American States Water's 72-year dividend growth streak highlights its resilience and commitment to returning value to shareholders. With a current yield of about 2.5% and a history of robust dividend growth, the company offers a reliable income stream for long-term investors. Its regulated operations and consistent cash flow provide a solid foundation for future payout increases.
Reporting based on: Yahoo Finance. Figures verified against market data where available.