York Water, established as the oldest investor-owned water utility in the United States, has consistently rewarded shareholders with dividends for more than 200 years. This extraordinary record is highlighted by 620 consecutive dividend payments, showcasing its commitment to returning value to investors. The company primarily serves customers in southern and central Pennsylvania, where it provides both water supply and wastewater treatment services.
In 2024, residential customers formed the backbone of York Water’s revenue stream, accounting for roughly 64% of total revenues, while commercial and industrial clientele contributed approximately 29%. As a regulated utility, the company operates under a framework that restricts arbitrary rate increases; however, York Water benefits from guaranteed returns approved through rate filings with the Pennsylvania Public Utility Commission. This regulation fosters steady cash flow generation, underpinning the company's ability to sustain its dividend payments over time.
Despite York Water’s venerable history and reliable payout, another water utility stock has gained favorable consideration: American States Water, which operates predominantly in California. This company's portfolio includes the regulated water business Golden State Water Company and the regulated electric utility Bear Valley Electric Service.
In 2024, these regulated entities contributed significantly to American States Water’s consolidated earnings per share (EPS) of $3.17. Specifically, Golden State Water Company accounted for 79.2% of this figure, while Bear Valley Electric Service added 6.6%. The predominance of regulated segments offers the company a high degree of foresight into future cash flow, enabling deliberate planning for essential capital expenditures such as infrastructure investments, strategic acquisitions, and dividend distributions.
While American States Water’s total history of dividend payments does not stretch back as far as York Water’s, it boasts a notable streak of 71 consecutive years of dividend increases. This accomplishment earns it a place among the elite Dividend Kings, a group of companies with over 50 years of uninterrupted dividend growth.
Over the past two decades, American States Water has also outperformed York Water in total stock returns, highlighting its capacity to generate value for investors beyond dividend stability. Though past performance is not indicative of future results, the company’s disciplined and consistent approach to raising dividends aligns with a strategy focused on sustainable passive income.
Considering these factors, American States Water emerges as a preferable option for investors seeking dividend growth coupled with predictable earnings from regulated utility operations. Its distinguished record of increasing dividends for more than seven decades, robust contribution from regulated businesses, and track record of delivering superior total returns present a well-rounded investment profile.
In contrast, although York Water’s heritage is remarkable and its dividend yield remains competitive, its relatively more modest dividend growth track record and narrower operational focus lead to a comparative advantage for American States Water in the current investment landscape.
Investors prioritizing long-term stability and growth in dividend income may, therefore, find American States Water to be a more compelling candidate within the water utility sector.