Understand any stock in simple English
Enter a ticker to learn what the company does and how it makes money.
It sells water and operates water and electricity systems for towns, military bases, and businesses.
American States Water Company does two main things, and they are genuinely different businesses. First, it sells water to homes and businesses in California through its Golden State Water division, and it runs water and electricity systems on military bases through a subsidiary called American States Utility Services. Second, and this is the part people find surprising, it is also a regulated electric utility serving a small area around the town of Big Bear, California.
Think of it as a landlord for pipes. It builds and maintains the systems that carry water and power, and customers pay monthly bills for the service. The water segment is the biggest piece, bringing in roughly three quarters of revenue. Regulators set the rates, so the company doesn't really compete on price, it competes on being allowed to earn a fair return on the money it invests in pipes, pumps, and treatment plants. The military base business is different: the company signs long-term contracts with the U.S. government to run utility systems on bases, which gives it steady, predictable income.
What makes the company interesting is how it uses its cash. It pays a dividend that it has raised for decades, one of the longest streaks on the New York Stock Exchange. It also keeps spending money on new infrastructure, which grows its rate base and, in turn, its profits. A recent theme has been the military privatization program, where the government keeps handing over base utility systems to private operators. The company also faces the usual regulatory risk: if a state commission denies a rate increase, the growth story slows down. Overall, it's a slow, steady, somewhat boring business that rewards patience more than excitement.
Saved answer · last researched 11 Oct 2026