The record dividend stock in the USA
👑 American States Water (AWR) has raised its dividend every year since 1954
Today, we’re taking a closer look at dividend track record holder American States Water Company (AWR). This water utility with a $3 billion market cap has set an impressive record that no other company has matched—raising its dividend for the 70th consecutive year! Let’s take a closer look at what makes this company so remarkable and why it has been so successful.
Fact: American States Water has the best track record of consecutive increases but another water utility company, York Water Co (YORW) has the longest track record of uninterrupted dividend payments with a streak since 1816.
Meet American States Water Co, a utility company with ticker symbol AWR. American States water leads all dividend Aristocrats and Dividend Kings with now 70 consecutive years of increased dividend.
No other company has a track record this long and strong as American States Water, which also happens to be a dividend hero based on a strong combination of dividend yield, growth, track record and other financial metrics.
INTRODUCTION
American States Water Company is a holding company that operates in three key sectors: water, electricity, and contracted services. The company’s operations are primarily conducted through three principal subsidiaries: Golden State Water Company, Bear Valley Electric Service, and American States Utility Services.
American States Water Company is the parent of Golden State Water Company, Bear Valley Electric Service, Inc. and American States Utility Services, Inc., serving over one million people in ten states. Through its water utility subsidiary, Golden State Water Company, the company provides water service to approximately 264,100 customer connections located within more than 80 communities in Northern, Coastal and Southern California.Through its electric utility subsidiary, BearValley Electric Service, Inc.,the company distributes electricity to approximately 24,800 customer connections in the City of Big Bear Lake and surrounding areas in San Bernardino County, California.
Through its contracted services subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and construction management services for water distribution, wastewater collection, and treatment facilities located on 12 military bases throughout the country under 50-year privatization contracts with the U.S. government.
THE COMPANY’s STRENGHTS
What makes American States Water Company so strong and resilient? Let’s explore some of their key strengths:
1. Diversified Services:
American States Water Company isn’t reliant on a single source of income. They are active in both the water and electricity sectors, and they also provide essential services to military bases nationwide. This diversification makes the company more resilient to economic fluctuations and changes in regulations.
2. Stable and Regulated Revenue:
Both GSWC and BVES operate as regulated utilities, meaning their revenues are largely stable. The rates they can charge customers are set by government agencies, which reduces uncertainty in their profitability.
3. Strategic Contracts:
ASUS holds long-term contracts with the U.S. military to manage water and wastewater systems at various bases. These contracts provide a stable and reliable revenue stream while also fostering a strong relationship with the government.
4. Record-Breaking Dividend Growth:
And of course, there’s their unmatched record of 70 consecutive years of dividend increases. This not only demonstrates the company’s financial health but also its commitment to rewarding shareholders, making it very attractive to long-term investors.
The Dividend
American States Water Company has paid dividends to shareholders every year since 1931, increasing the dividends received by shareholders each calendar year for 70 consecutive years, which places it in an exclusive group of companies on the New York Stock Exchange that have achieved that result.
Best dividend track records USA (check the full list here)
1.      American States Water (70 consecutive years)
2.      Dover Corporation (69 consecutive years)
3.      Parker Hannifin, Genuine Parts Co, Procter & Gamble and Northwest Natural Gas (68 consecutive years)
7. Emerson Electric (67 consecutive years)
American States water announced a dividend hike of 8.3% to 46.55 cents quarterly per share on August 1, 2024. This marked the 70 consecutive years of increased dividends, a record not matched by any other company. At a stock price of $81.42 the dividend yield for AWR is 2.3%.
Does American States Water have a moat?
Let’s talk about an important concept in investing: the "moat," or the competitive advantage of a company. Does American States Water Company have a moat?
The answer is: absolutely!
1. Regulated Market Position:
Their operations in the regulated utility sector give them a strong competitive edge. It’s extremely difficult for new companies to enter the market due to heavy regulation and the high costs of infrastructure.
2. Essential Services:
Water and electricity are basic needs that no one can go without. This means there will always be demand for their services, regardless of the economic situation.
3. Long-Term Contracts:
The long-term contracts with the U.S. military provide a steady stream of revenue that competitors would find hard to replicate.
American States Water Company is a powerful and resilient company that, through diversification, stable revenue streams, and strong competitive advantages, stands as a leader in its industry. Their record of 70 consecutive years of dividend increases is a testament to their ongoing success and commitment to shareholders.
Do you think American States Water Company would be a good addition to your investment portfolio? Let us know in the comments below. Thanks for reading, and see you next time!
Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.
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