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American States Water: The Longest Dividend Growth Streak In America

Published Sat, 12 Aug 2017 06:03:42 -0400 on Seeking Alpha

Companies that have consistently increased their dividends over the course of several decades are often some of the most resilient businesses in the market.
Dividend kings are especially popular with income investors because they have boosted their payouts for at least 50 consecutive years.
American States Water (NYSE: AWR) is a small cap and under-followed dividend king with 63 straight years of dividend increases under its belt, the longest payout growth streak in the U.S.
Let's take a closer look at American States Water to better understand its competitive advantages, assess how quickly its dividend could grow in the future, and evaluate if today's valuation makes sense for investors, especially those seeking safe high yield stocks.
Business Overview Founded in 1929 in San Dimas, California, American States Water is a regional regulated water and electrical utility serving 75 communities in 10 counties in Northern, Coastal, and Southern California.

Source: Investor Presentation
It also serves 24,000 electrical customers in San Bernardino County.
The company has three business segments: regulated water, regulated electrical (both under the Golden State Water Company), and its utility services unit, which operates water and wastewater systems on 10 military bases around the U.S. under 50-year contracts.

In 2016, approximately 78% of its revenue came from its regulated utilities operations (primarily water), with the remaining 22%... Read more