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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American Water Works Dividend Stock Analysis 2016

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American Water Works Company (AWK) is the largest publicly traded water company serving approximately 15 million people in U.S. and Canada. It operates approximately 81 surface water treatment plants with approximately 500 groundwater treatment plants and 1,000 groundwater wells; 100 wastewater treatment facilities, 1,200 treated water storage facilities, 1,400 pumping stations, 81 dams, and 49,000 miles of mains and collection pipes.

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American Water Works appears to have turned the company around and cleaned up its books since facing a lot of challenges a few years ago. Earnings and free cash flow have turned positive and dividends have continued to grow over the years. The company provides a great opportunity for investors looking to water exposure, although it appears to be a bit overvalued currently.

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Dividend Raises & Cuts for October 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.

Kansas City Southern Dividend Stock Analysis

Kansas City Southern (KSU) is the smallest of the North American Class 1 railroad companies. The company commands 6,500 miles of rail network serving southern US with seamless cross-border service to Mexico. The company serves 12 Gulf ports and 1 Pacific Ocean port. The following system map image demonstrates the scale and reach of Kansas City Southern.

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(Image Source: Kansas City Southern IR)
Kansas City Southern own 100% of subsidiary Kansas City Southern de México, S.A. de C.V. (“KCSM”), which has a 50-year concession from the Mexican government and could expire in 2047 unless extended – to operate the KCSM arm. The company directly competes with Ferrocarril Mexicano, aka FerroMex (which is partly owned by Union Pacific) inside Mexico.

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Norfolk Southern Dividend Stock Anlaysis

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Norfolk Southern Corp (NSC) is the fifth largest publicly traded railroad company in North America. The company commands an impressive 20,000 miles of rail network serving 22 states and 40+ ports. The following system map image demonstrates the scale and reach of Norfolk Southern. Norfolk Southern operates and services the east coast of the US and directly competes with CSX Corp (CSX).

Railroads are the pulse of the economy. While crude shipments are on their way to a recovery thanks to the rise in oil prices, coal remains in a secular downtrend. NSC sees continued pressure as coal made 17% of total revenue opportunity in 2015. NSC expects further weakness as coal volumes continue to drop. This article provides a detailed stock analysis for Norfolk Southern Corp.

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