Reasons to Add American States Water to Your Portfolio Right Now

American States Water’s AWR strategic investments in infrastructure upgrades will allow it to provide quality services to its expanding customer base. Given its growth opportunities, AWR makes for a solid investment option in the utility sector.Let us focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment option at the moment.Growth Projections of AWRThe Zacks Consensus Estimate for AWR’s 2025 earnings per share (EPS) indicates year-over-year growth of 10.71%.AWR’s long-term (three-to-five years) earnings growth rate is 1.85%.AWR’s Systematic InvestmentsStrategic capital investments are making AWR’s infrastructure stronger and more resilient. The company has plans to invest $573.1 million in the 2025-2027 period to further strengthen its operation.AWR’s Solvency RatioThe times interest earned ratio at the end of third-quarter 2024 was 3.9. The ratio, being greater than one, implies the company’s ability to meet future interest obligations without difficulties.Dividend History of AWRThe company’s objective is to increase the dividend and witness a CAGR of more than 7% in the long term. Currently, American States Water’s quarterly dividend is 46.55 cents per share, up 8.3% from the previous quarter’s 43 cents. The new dividend resulted in an annualized dividend of $1.862 per share. The company’s current dividend yield is 2.52%, better than the Zacks S&P 500 composite’s 1.53%.AWR’s Price PerformanceIn the past year, the stock has lost 2.1% compared with the industry’s 2.6% decline. The slackness in price offers a good opportunity to add the stock at low rates. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are Dominion Energy D, OGE Energy OGE and Atmos Energy ATO, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.D’s long-term earnings growth rate is 13.6%. The Zacks Consensus Estimate for 2025 EPS has increased 0.3% in the past 60 days.OGE’s long-term earnings growth rate is 5.18%. The Zacks Consensus Estimate for 2025 EPS indicates year-over-year growth of 4.75%.ATO’s long-term earnings growth rate is 7.01%. The Zacks Consensus Estimate for fiscal 2025 EPS has increased 0.3% in the past 60 days.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OGE Energy Corporation (OGE): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report American States Water Company (AWR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks