American States Water Company (NYSE:AWR) is not exactly a household name among dividend investors, but its latest dividend increase shows why it deserves more attention. On July 28, 2026, the company's board approved an 8.2% increase in the quarterly payout, raising it to $0.5455 per share from $0.5040. That gives investors an annualized dividend of $2.182 per share.
That is a pretty meaningful increase for a company that usually stays out of the spotlight. More importantly, it adds to a dividend record that is hard to match. American States Water Company (NYSE:AWR) does not get the same attention as the larger utilities, but its dividend history is one of its biggest strengths.
The company has paid dividends every year since 1931 and has raised them for 72 consecutive years. It has also made 361 consecutive quarterly payments. The pace of those increases is worth noting, too.
AWR's quarterly dividend has grown at an 8.4% compound annual rate over the past five years and is on track for an 8.7% 10-year CAGR through 2026. Management is also targeting dividend growth of more than 7% a year over the long run. This is where American States Water Company (NYSE:AWR) gets more interesting for long-term income investors.
A yield of around 2.5% is not going to stand out next to higher-yielding utility stocks. However, if the dividend keeps growing at roughly 8% a year, the picture changes over time. At that pace, the current $2.182 annual payout would reach roughly $3.20 in five years.
For someone building an income stream for the long term, that growth can matter a lot more than the initial yield suggests. At a recent closing price of $87.94, American States Water Company (NYSE:AWR)'s forward dividend yield comes to about 2.49%. That is not a particularly high yield, and investors looking for the most income today can find better options across the utility and energy sectors.
Extract — continue reading at the source.
