American States Water Company (NYSE:AWR) is a top dividend stock and generally makes for a solid investment to hold for the long term. It’s one of the safest income stocks you can own on the markets, with the company paying dividends since 1931. It has been increasing its payout for decades and this month, it raised its dividend yet again.
On Aug. 1, American States Water announced an 8.3% increase to its quarterly dividend. The new payout is $0.4655, which is up from the previous payment of $0.43. The new dividend means that the stock’s yield is now up to 2.3%, which is higher than the S&P 500 average of 1.4%.
While the yield may still look modest, what’s particularly valuable is the dividend growth. The company has been increasing its dividend for 70 consecutive years and the rate of increases have been generous as well. It has averaged a dividend growth rate of 8.8% over the past five years.
The utility company serves as a great investment for people who are seeking stable and recurring dividend income. You’re not likely going to earn a high return from the stock, but it can be a useful vehicle for generating recurring cash flow. In five years, the stock has declined by 2% but when including its dividend payments, your total returns would be around 7.6%.
American States Water has a low beta value of 0.45, which means you won’t have to worry about wild swings in the market having a big impact on its share price. If you’re looking for a solid dividend stock with a growing yield, American States Water is an investment you should consider adding to your portfolio today.
