American States Water Company: The Dividend King You Can’t Ignore in 2025!

American States Water Company, along with its subsidiary companies, provides water and electricity supply services to residents, industrial facilities, and other clients in the United States.

The main business segments are water, electricity, and contracted services. The company extracts, produces, supplies, and sells water in ten districts of California, serving approximately 260,000 water consumers. It provides electricity to around 24,000 customers in the city of Big Bear and its surrounding areas in California. Additionally, the company offers services for wastewater management, water supply maintenance, renovations, and other facilities.

Financial Performance and Key Ratios

AWR has demonstrated steady revenue growth over the years, driven by its regulated water and electric operations. The company benefits from predictable cash flows due to its regulated utility business model.

Revenue: $577.54 million (TTM), Net Income: $110.88 million (TTM), Earnings Per Share (EPS): $2.97 (TTM), Price-to-Earnings (P/E) Ratio: 25.05.

American States Water Company Stock Price Performance

• Current Stock Price: $73.32
• 52-Week High: $87.50
• 52-Week Low: $66.03
• Market Cap: $2.77 billion
• Average Trading Volume: 181,943 shares

Investment Insight

While American States Water Company may not rank among the most prolific cash flow generators in the utilities sector due to inherent industry constraints, it distinguishes itself through exceptional profitability. The company demonstrates consistently strong financial metrics, including industry-leading returns on equity and capital employed, reflecting its disciplined operational efficiency and strategic capital allocation.

These strengths translate into robust long-term shareholder returns, further amplified by a dividend yield that consistently outperforms broader market averages. This combination of reliable income generation and defensive positioning—rooted in ASWC’s role as a regulated essential service provider—makes it a compelling candidate for portfolio diversification. Investors prioritizing stability, income resilience, and risk mitigation in cyclical markets may find ASWC’s hybrid value-income profile particularly advantageous for balancing growth-oriented holdings. 

American States Water Company Stock Forecast**

2025–2029 Price Targets: 

Year	MIN Target	MAX Target
2025	62.62	82.98
2026	66.95	88.72
2027	71.58	94.85
2028	76.53	101.41
2029	81.82	108.42

When to buy and Investment Tips

The stock price has been oscillating within a broad price channel since 2022. Currently, it is nearing the lower boundary of this channel. According to our calculated indicators, particularly the Equity Risk Premium (-0.08%), the stock is fairly valued based on the company’s 2023 performance results. Consequently, we recommend waiting for a market price correction before considering a purchase.

Dividend Policy

AWR has an impressive track record of dividend growth, having increased its dividend for over 65 consecutive years. This makes it one of the few Dividend Kings in the market. The company maintains a sustainable payout ratio, usually in the range of 50-60%. This indicates that AWR retains sufficient earnings to reinvest in its operations while rewarding shareholders.

• Dividend Yield: 2.54%
• Recent Dividend: $1.86 per share (paid on November 15, 2024)

Conclusion

American States Water Company (AWR) stands out as a resilient and profitable utility stock, offering a unique blend of stability, income generation, and long-term growth potential. With a strong track record of dividend growth, consistent financial performance, and a regulated business model, AWR is an attractive option for investors seeking defensive positioning in their portfolios.

While the stock is currently fairly valued, potential investors should monitor for price corrections to capitalize on entry opportunities. Its hybrid value-income profile makes it a compelling choice for balancing growth-oriented investments.

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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.