American States Water Co Dividend Stock Analysis 2016

American States Water Co (AWR) together with its subsidiaries, provides water and electric services to residential, industrial, and other customers in the United States. It operates through three segments: Water, Electric, and Contracted Services. American States Water Co differentiates itself from the competition due to its long term contracts with the US military. Due to the nature of the contracts, the company has enjoyed stable revenue and earnings growth over the past several years. According to the last quarterly report, approx. ¼ of its earnings come from the long term military contracts. Most recently, the company won a 50-yr contract to operate and maintain water and wastewater systems at Elgin Air Force Base in Florida. The contract is estimated to be a value of $510M over 50 years.

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American States Water Co boasts one of the best dividend growth streaks. With 62 years of consecutive dividend raises, not many companies can stand up to challenge that record. Running a company in one of the most fundamental requirements for human survival – water, the company has enjoyed extremely stable revenue and earnings over the decades

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Recent Buy – Algonquin Power & Utilities Corp

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A quick update on a recent purchase in my portfolio this week. I had a GTC order sitting on this company for a little while which got executed and I managed to pick up a nice chunk of shares at a decent valuation.

I bought 200 shares of Algonquin Power & Utilities Corp (AQN.TO) @ C$11.00. The company currently yields 5% adding US$84.70 (the company pays dividends in US$) to my forward dividend income.

Only new developed since last purchase earlier this year is that the company is now cross-listed on the NYSE (symbol: AQN). Other than that, its business as well. The company is well run, provides great exposure to US utilities in all three subsectors — electric, natural gas and water, has arguably the most impressive revenue growth and earnings growth story in the sector, and offers lucrative dividends, which are expected to rise by 8-10% over the next few years.

To read a more detailed description, check out my last post where I profiled this company.

Recent Buy – Algonquin Power & Utilities Corp

Full Disclosure: Long AQN.TO. My full list of holdings can be found here.

 

Passive Income Update – Nov 2016

Welcome to our monthly passive income update for August 2016. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the growth of our dividends going forward.

Passive Income  Update

Passive income for the month of August 2016 was C$534.99. The passive income for the month comprised of US$292.93 and C$142.46 (exchange rate is US$1 = C$1.34).

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Passive income change is -2.20% QoQ and -20.85% YoY for the month. The passive income YTD is $7,670.26, which achieves 85.22% of our annual goal of earning $9K.

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Dividend Raises & Cuts for November 2016

Dividend growth investing is a popular model followed by the investing community to build assets. Companies which not only pay dividends, but raise them year after year have been shown to perform better overall for investor returns. On the flip side, it is also important to keep an eye on the dividend cuts, which could signal troubling times ahead for a company. This post captures the announcements of changes in dividend amount for the week – both increases and cuts.

Note that only $2B+ (Midcap+) companies are included in this list.

9 Top Dividend Stocks in the Energy Sector after the OPEC Meeting

This is a guest contribution from The Dividend Manager

Energy stocks have seen a lot of volatility over the last two years as the supply of oil increased and the price of oil plummeted. In 2014, the price of a barrel of Crude Oil WTI was over $100. By the beginning of 2015, the price was under $50 per barrel. The final bottom in price occurred earlier this year when crude hit $25 a barrel. The chart below illustrates the downfall of crude oil prices since 2012. While the price has rebounded since the February lows, it has not come close to rebounding to its 2014 price high.

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On November 30th, 2016 the Organization of Petroleum Exporting Countries (OPEC) agreed to cut crude oil production by 1.2 million barrels a day. Currently, production is at a record high, at 33.6 million barrels per day. This will be the first cut in production since 2008, but there is still expected to be a significant surplus in oil supply. This production cut will likely drive up the price of Crude Oil WTI and make many energy companies more profitable.

The news sent many energy stocks soaring.The Energy Select Sector SPDR ETF (NYSE: XLE) jumped over 5% following the news (compared to year-to-date performance of +10%).This bump comes after many of these stocks jumped as part of the “Trump Rally” following the election, and has many energy investors excited about current performance and how the new production may impact oil prices going forward. WIth large tax cuts and decreased regulation on the way in 2017, many of the energy companies listed below should profit from increased economic growth.

The stocks below are the energy stocks that I maintain on our Top 100 Dividend Stocks list. My favorites include Occidental Petroleum, Schlumberger, Total SA ADR, and Valero. While some investors have been spooked by the energy sector in the last two years, there are many intriguing stocks with high dividends & excellent dividend growth prospects now that oil has crossed back above $50 a barrel.

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