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American States Water’s Stable Dividend Profile

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American States Water

We’re analyzing utility stocks that increased their dividends for at least the past 40 years in this series. American States Water Company (AWR) has increased its dividend for the past 50 consecutive years. It’s currently trading at a dividend yield of 1.8%. In comparison, the Utilities Select Sector SPDR ETF (XLU) is currently trading at a yield of 3.5%.

American States Water raised its dividend by 4%, compounded annually, over the last five years, in line with the industry average. Its payout ratio in the last 12 months stood at 56%, much lower than broader utilities’ average.

AWR stk

AWR stock showed a tremendous rally last year. In the last year, it soared 36%—significantly outperforming peers.

In terms of total returns, its one-year returns came in at 39% while it returned more than 20%, compounded annually, over the last five years. The largest water utility, American Water Works (AWK), returned 19% in the last year and 18% in the last five years, compounded annually.

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Analyst price targets

Analysts have given American States Water a mean price target of $50.0 against its current market price of $59.5, which indicates a potential fall of 16% in a year.

Among the four analysts tracking AWR, three recommend it as a “hold” while one analyst rates it as a “sell” as of January 25. None of the analysts currently rate it as a “buy.”

Also see Analyzing the Top 5 Most Volatile S&P 500 Utilities.

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