American States Water Company

American States Water raised its dividend by 8.2% last month, extending its streak of annual dividend increases to 72 consecutive years. The water utility has now paid 361 consecutive quarterly dividends and remains one of fewer than 60 companies with 50 or more years of annual dividend increases. The company serves 1 million customers in 10 states through its regulated utilities and also operates water and wastewater facilities at 12 military bases under long-term contracts. It plans to invest $185 million to $220 million this year in its regulated utilities and recently agreed to acquire a new water system in California for almost $5.3 million. American States Water has grown its dividend at an 8.7% compound annual rate over the last decade, driving a 10.4% annualized total return.

Five Dividend Aristocrats posted better-than-expected second-quarter earnings and raised full-year guidance, according to 24/7 Wall St. American States Water crushed Q2 estimates and rewarded shareholders with an 8% dividend hike, extending its 70-year streak of consecutive increases. Coca-Cola reported $13.37 billion in revenue and $0.97 in comparable EPS, beating consensus and raising its full-year earnings growth forecast to 8% to 9%. Dover's adjusted EPS climbed 12% to $2.74, and the company raised full-year guidance for both organic revenue and adjusted earnings. Federal Realty Investment Trust posted a 96% occupancy rate and extended its record 59-year streak of annual dividend increases. Stanley Black & Decker delivered a massive earnings beat, reporting $1.57 adjusted EPS versus the $1.21 consensus.

American States Water Company reported second-quarter 2026 earnings of $1.09 per share, up 25.3% year over year and beating the Zacks Consensus Estimate of 93 cents by 17.2%. Operating revenues rose 11.2% to $181.29 million, driven by a 9.5% increase in water segment revenues to $131.05 million, a 20.3% jump in contracted services revenues to $36.61 million, and a 5.4% rise in electric segment revenues to $13.63 million. The gains primarily reflect CPUC-approved rate increases effective January 1, 2026, higher water consumption, and additional revenues from approved capital projects. Operating income increased 25.5% to $63.97 million, and net income rose 28.4% to $43.27 million. The board approved an 8.2% dividend increase to 54.55 cents per share, marking the 72nd consecutive year of annual dividend hikes, and the company completed its $200 million at-the-market equity offering program with no plans for additional equity issuance through at least the end of 2029.

American States Water has raised its dividend for 71 consecutive years, with a five-year compound annual growth rate of 8.5%, supported by a sub-60% payout ratio and a legally protected water monopoly. The company's shares have returned 15.46% year-to-date, outpacing the utility sector ETF XLU by nearly six percentage points, driven by a compounding $1.67 billion rate base and 50-year military base contracts. Nine directors made a coordinated share purchase at $75.92 in May 2026, while a completed $200 million equity offering removes dilution risk through 2029. The annual dividend stands at $2.016 per share, yielding 2.57%, with the most recent increase of 8.3% in July 2025. The dividend is rated very safe, though risks include a potentially hostile regulatory posture in the 2028–2030 rate cycle and wildfire liabilities at Bear Valley Electric.

American States Water has returned 6.4% since the start of the calendar year, outperforming the broader Utilities sector's average return of 5.3%. The stock holds a Zacks Rank of #2, or Buy, and its full-year consensus earnings estimate has risen 3.3% over the past quarter. Within the Utility - Water Supply industry, which has gained an average of 0.5% year-to-date, American States Water is also performing better. Another water utility, Sabesp, has returned 10.1% year-to-date and carries a Zacks Rank of #2 after its current-year consensus EPS estimate increased 234.5% over the past three months.

American States Water Company has successfully completed its at-the-market equity offering program, raising the full $200 million in gross proceeds. The program, established in February 2024, allowed the company to sell shares of its common stock from time to time, and it was fully utilized by June 12, 2026. Net proceeds were used for general corporate purposes, including paying down credit facility borrowings and making equity contributions to regulated subsidiaries. The company stated it has no plans to issue additional equity through the end of 2029 and likely beyond based on current estimates.

The Federal Reserve kept its benchmark interest rate unchanged in the 3.5–3.75% range at its June policy meeting, while signaling a possible rate cut later this year amid persistent inflation. Against this backdrop, Zacks Investment Research recommends four low-beta defensive stocks from the consumer staples sector that have seen positive earnings estimate revisions in the past 60 days and carry a Zacks Rank #2, or Buy. The picks are American States Water Company, with a beta of 0.60 and a dividend yield of 2.61%; Consolidated Edison, with a beta of 0.27 and a yield of 3.34%; The Coca-Cola Company, with a beta of 0.35 and a yield of 2.67%; and The New York Times Company, with a beta of 0.95 and a yield of 1.26%. The Fed removed earlier wording that had hinted at additional rate cuts, and policymakers suggested future rate increases could still be on the table if needed, after cutting rates by 75 basis points at the end of 2025. Inflation remains a key concern, with the Consumer Price Index rising 0.5% in May following a 0.6% increase in April, and the Iran conflict pushing oil prices to record levels.