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.
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