American States Water (NYSE:AWR): 57 consecutive years of dividend increases

American States Water a considérablement évolué depuis 1929 lorsque les premiers systèmes d'eau ont été acquis par la société. Aujourd'hui AWR est un fournisseur de services axés sur les needs of more than a million people across California and ArizonaIn 1998, American States Water Company became the parent company of a new subsidiary dedicated to the unregulated water industry, American States Utility Services Inc.

AWR provides water to 1 in 36 Californians in 75 communities across 10 counties. The company also distributes electricity to approximately 23,250 customers through Bear Valley Electric Services. Through its subsidiary, American States Utility Services Inc., the company provides services to municipalities, the U.S. government and private entities, including billing, meter reading, water marketing and operations, and maintenance of water and wastewater systems at various military installations throughout the United States.

THE long term average return is interesting, at 3.05%, but the PER is quite high, with 16.20, and above all the average annual progression of dividends is among the lowest of our portfolio, with 3.33%. This low rate is offset by 57 consecutive years of dividend increases, soit le record de notre portfolio ex-aequo, avec PG. Le distribution ratio est correct, à 51.80%, ce qui laisse une certaine marge à la société pour continuer à faire progresser son dividende même en cas de passage difficile.

There volatility, avec 12.35%, est légèrement plus élevée que celle de notre portfolio, mais reste bien inférieure à celle du marché. Le beta, avec 0.35, indique que le titre est également peu sensible aux variations du marché. Le graphique ci-dessous confirme le caractère indépendant et peu volatile de AWR.

AWR does not offer any particular protection against fluctuations in the dollar: 

AWR could be suitable for a very risk-averse investor or rentier, looking for a regular performance and who is couvert contre le risque d'inflation. The price appreciation and the growth of distributions give it an additional argument compared to bonds. Even if the performance compared to the S&P is modest, the volatility and beta are in return really reasonable.

For our part, even if we often err on the side of caution, we are of the opinion this time that despite its undeniable defensive strength, the income that can be expected from AWR is not sufficient to justify a purchase. On the other hand, it is obviously a good stock to keep if you already have it in your portfolio.