AWR - American States Water: There Are Better Ways To DRIP Your Income Stream
2024-02-16 05:43:48 ET
Summary
- American States Water has raised its annual dividend for 69 consecutive years, making it a Dividend Champion.
- However, the stock's performance over the past 5 years has been subpar, with a total return of only 16%.
- The company's valuation and growth prospects do not look encouraging, and it has received a Sell rating from the SA Quant rating system.
As a proponent of an income compounding approach to dividend investing, I am often challenged with comparisons to a more traditional dividend growth strategy that focuses on dividend growth and total return. The concept of total return in the context of DGI (dividend growth investing) means price appreciation from an initial investment along with dividend income that grows year after year. The income compounder approach that I utilize to grow my dividend income stream focuses on reinvesting and compounding shares of dividend-paying investments, rather than focusing on the total "value" of my holdings, which can vary from day to day based on current market conditions. I recently reviewed the latest changes to my Income Compounder portfolio, if you would like to learn more about my approach....
American States Water: There Are Better Ways To DRIP Your Income Stream