American States Water Company (AWR): This Quiet Dividend King Keeps Raising the Bar

American States Water Company (AWR) is a utility stock that often goes unnoticed, yet its consistent dividend increases make it an intriguing option for long-term investors. On July 28, 2026, the company announced an 8.2% increase in its quarterly dividend, raising it to $0.5455 per share, which translates to an annualized payout of $2.182.

This represents a notable boost for a company that generally stays out of the spotlight. AWR has a remarkable dividend history, having paid dividends every year since 1931 and raised them for 72 consecutive years, with 361 consecutive quarterly payments to date. The company's quarterly dividend growth rate has averaged 8.4% over the past five years, with an expected 8.7% CAGR through 2026.

AWR's yield is modest, at around 2.5%, but if the dividend continues to grow at roughly 8% per year, the current payout could reach $3.20 in five years. While the company's forward P/E of 23.2x is higher than many utility stocks, AWR's dividend growth, stable business, and long history of increases justify the valuation for some investors.

The company's operations, including regulated water and electric services and contracted services for military bases, provide a relatively consistent revenue stream. Management expects to invest $185 million to $220 million in capital projects in 2026, with a broader multiyear capital program exceeding $650 million, which should strengthen the company's earnings growth potential over time.

Despite its higher valuation, AWR remains a compelling option for investors seeking reliable dividends and steady growth.