The Board of Directors of
American States Water Company
) extended its practice of sharing more benefits with its
shareholders by increasing cash dividend rate. The company has
increased its quarterly cash dividend by 14.1% sequentially to
40.50 cents per share. It will be paid on Sep 3, 2013 to
shareholders of record as of Aug 15.
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As a result of this revision, American States Water's annualized
cash dividend rate will be $1.62 per share. The new annual
dividend yield will be 2.9%, which is higher than the sector
average of 2.2%.
American States Water values its owners and has a long history of
increasing dividend to maximize their wealth. The company is
paying dividends to its shareholders every year since 1931. With
the latest dividend, it has hiked dividend for shareholders in
each calendar year in 59 consecutive years. The last hike was in
Aug 2012. Quarterly cash dividend increased 26.7% sequentially to
35.50 cents per share.
The board of American States Water not only increased the
quarterly dividend rate, but also approved a 2-for-1 stock split.
The company's share price moved up 54.2% in the last twelve
months, closing at $54.94 at the end of the trading session on
May 21, 2013. The stock split will be effective from Sep 3, 2013
and we believe it will allow more investors to invest in this
American States Water's cash flow from operating activities at
the end of first-quarter 2013 was $31 million versus $26.6
million in the comparable period last year. In first-quarter
2013, the company utilized $6.8 million for dividend payouts.
American States Water's consistent cash flow generating ability
will easily provide additional $1 million required for increased
Like American States Water, a few other water utility operators
have also raised their quarterly dividend rates in recent months.
Aqua America Inc.
Artesian Resources Corporation
American Water Works
) have raised their quarterly dividend rate by 9%, 1.5% and 12%,
San Dimas, Calif.-based American States Water was founded in
1929. The company caters to customers in the United States and
distributes water, electricity and other allied services. The
company currently has a Zacks Rank #2 (Buy).