American States Water: Not a Buy at these Levels


American States Water Co. (NYSE:AWR) offers investors a long track record of business success, the longest dividend growth streak in the country, if not the world, and reasonably good growth prospects.

Although the above makes for a solid investment thesis, the company is looking overvalued relative to its peers and recent history. AWR might be a great company with a strong history, but it is not a buy at these levels.

  • It’s a strong business with an even stronger track record of success, but its valuation is just too rich.
  • It has consistently outperformed its industry and the broader market for years.
  • Earnings and revenues have grown nicely throughout the years, and will likely continue to do so.
  • AWR has increased its dividend every year for the past 64 years, more than any other company.


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