Core Viewpoint - The focus is on providing high-quality investment opportunities, particularly in dividend growth stocks and closed-end funds, aimed at generating stable income and long-term wealth creation for investors [2][3]. Group 1: Investment Strategies - The service emphasizes investments that are leaders within their industry to ensure stability and growth [2]. - There is a specific focus on writing options as a strategy to further enhance income for investors [2]. Group 2: Analyst Background - The leader of the investing group, Cash Builder Opportunities, has 14 years of investing experience and a background as a fiduciary and registered financial advisor [3]. - The group shares model portfolios and research to assist investors in making informed decisions through an active chat room [3]. Group 3: Analyst Disclosures - The analyst has disclosed a beneficial long position in shares of companies such as GOOGL, MSFT, AWR, and PAYX, either through stock ownership or derivatives [4].

Core Viewpoint - Growth investing can be simplified by focusing on dividend stocks, particularly Dividend Kings, which have a long history of increasing payouts and may outperform traditional growth stocks over time [2][6]. Group 1: Dividend Kings - Dividend Kings are companies that have raised their annual per-share dividend payments for at least 50 consecutive years, with only 56 stocks qualifying as of early 2026 [5]. - These companies often represent stable, slow-moving businesses that can provide reliable income and potential for long-term capital appreciation [6]. Group 2: Company Examples - **Automatic Data Processing (ADP)**: - ADP processes payroll for over 1 million corporate customers and is expected to generate $21.8 billion in revenue this fiscal year, a 5.8% increase from the previous year [8]. - The company has a market cap of $103 billion and a dividend yield of 2.48%, with dividends raised for 51 consecutive years [10][12]. - ADP consistently converts 20% to 25% of its revenue into net income, supporting ongoing dividend increases [11]. - **Walmart**: - Walmart has increased its per-share dividend payout for 52 consecutive years and has a market cap of $946 billion [13]. - The current dividend yield is 0.79%, with a stock price increase of 156% over the past three years [15]. - Walmart's extensive reach in the U.S. allows it to maintain significant earnings, funding stock buybacks and sustaining dividends despite low profit margins of 3% to 4% [17]. - **American States Water**: - This utility company has raised its dividend for 70 consecutive years, with an average annual increase of over 8% in the past decade [21]. - The company serves over 1 million people and has a market cap of $2.9 billion, with a forward-looking dividend yield of 2.8% [22][24]. - The growing scarcity of potable water and demand for electricity provide American States Water with strong pricing power [23].

Core Viewpoint - Aurwest Resources Corporation has entered into a non-binding Letter of Intent with Pacific Bay Minerals Ltd to earn a 50% interest in the Weaver Gold Project over three years [1] Group 1 - Aurwest Resources Corporation is pleased to announce the agreement with Pacific Bay Minerals Ltd [1] - The agreement allows Aurwest to earn a 50% interest in Pacific Bay's 100% owned Weaver Gold Project [1] - The terms of the agreement are structured over a three-year period [1]

Core Viewpoint - York Water is recognized for its long-standing commitment to shareholder dividends, having made 620 consecutive payments over more than two centuries, making it a reliable choice for dividend investors [1][2]. Company Overview: York Water - York Water is the oldest investor-owned water utility in the United States, providing water and wastewater treatment services primarily in southern and central Pennsylvania [4]. - The company generates approximately 64% of its operating revenue from residential customers and 29% from commercial and industrial customers in 2024 [4]. - As a regulated utility, York Water files rate increase requests with the Pennsylvania Public Utility Commission, ensuring steady cash flows to support its dividend payments [6]. Key Financial Metrics: York Water - Current Price: $32.44 [5] - Market Cap: $468 million [5] - Gross Margin: 55.27% [6] - Dividend Yield: 2.70% [6] Company Overview: American States Water - American States Water operates primarily in California and relies on regulated businesses for the majority of its earnings, with its regulated water business contributing 79.2% to its consolidated earnings per share (EPS) of $3.17 in 2024 [8][9]. - The company has a history of 71 consecutive years of raising its dividend, placing it among the elite Dividend Kings [10][12]. Key Financial Metrics: American States Water - Current Price: $73.04 [7] - Market Cap: $2.8 billion [7] - Gross Margin: 51.96% [8] - Dividend Yield: 2.65% [8] Comparative Performance - Over the past 20 years, American States Water has delivered a better total return compared to York Water, highlighting its strong commitment to increasing dividends [11].

Core Insights - The article emphasizes the importance of a dividend growth investing strategy, focusing on consistent returns through "base hits and doubles" in investments [1] Group 1: Author's Background - The author has been investing since September 2017 and has a long-standing interest in dividend investing since 2009 [1] - The author runs a blog called "Kody's Dividends," which documents the journey towards financial independence through dividend growth investing [1] - The author is also a contributor to various financial platforms, including Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital [1] Group 2: Investment Philosophy - The core analysis revolves around identifying dividend growth stocks that provide consistent returns [1] - The author aims to transform the dream of financial independence into reality through strategic investments in dividend growth stocks [1]

Core Insights - American States Water (AWR) is experiencing growth due to an expanding customer base in water and electric utility services, leading to increased demand for its offerings [1] - The company has a diversified business model that includes water, electricity, and long-term military contracts, contributing to stable financial performance [1] Growth Outlook & Surprise History - The Zacks Consensus Estimate for AWR's 2025 earnings per share (EPS) has risen by 1.22% to $3.32 over the past 60 days [2] - Projected revenues for 2025 are estimated at $629 million, reflecting a growth of 5.63% compared to the reported figure for 2024 [2] - AWR's long-term earnings growth rate is forecasted at 5.65% [2] - The company has exceeded earnings estimates in three of the last four quarters, with an average surprise of 3.63% [2] Return to Shareholders - AWR has been consistently increasing shareholder value through dividends, currently paying a quarterly dividend of 50.5 cents per share, which annualizes to $2.02 [3] - The current dividend yield stands at 2.73%, outperforming the Zacks S&P 500 composite average of 1.41% [3] Investment Plans and Interest Rate Impact - AWR plans to invest $573.1 million from 2025 to 2027 to enhance infrastructure and operations, with capital expenditures for 2025 estimated between $180 million and $210 million [4] - The decline in interest rates, with the U.S. Federal Reserve reducing the benchmark rate by 175 basis points to a range of 3.50-3.75%, is expected to lower AWR's cost of capital and improve margins [5] Debt Structure - AWR's total debt to capital ratio is 47.54%, which is better than the industry average of 50.46% [6] - The times interest earned (TIE) ratio for AWR at the end of Q3 2025 was 4.5, indicating the company can comfortably meet its interest payment obligations [6] Stock Price Performance - Over the past six months, AWR's stock has decreased by 5%, while the industry has seen a growth of 3% [7] Additional Industry Insights - Other top-ranked stocks in the same industry include Ameren (AEE), NextEra Energy, Inc. (NEE), and Dominion Energy, Inc. (D), all currently holding a Zacks Rank 2 [10] - AEE has a long-term earnings growth rate of 8.52% with a 2025 EPS estimate of $5.01, indicating an 8.21% year-over-year growth [10] - NEE's long-term earnings growth rate is 8.08%, with a 2025 EPS estimate of $3.69, suggesting a 7.58% year-over-year increase [11] - D has a long-term earnings growth rate of 10.26%, with a 2025 EPS estimate of $3.40, reflecting a year-over-year growth of 22.74% [11]

Analyst’s Disclosure:I/we have a beneficial long position in the shares of YORW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice ...

Core Viewpoint - The Zacks Utility - Water Supply industry is essential for providing clean drinking water and efficient sewer services, with a focus on infrastructure upgrades to meet growing demand and address aging pipelines [1][2][3]. Industry Overview - The industry consists of companies providing drinking water and wastewater services across a vast network of nearly 2.2 million miles of aging pipelines, requiring continuous investment in infrastructure [3]. - Water utilities benefit from lower interest rates, which reduce financing costs and support infrastructure investments [4]. - The U.S. water industry is fragmented, with over 50,000 community water systems and 14,000 wastewater treatment facilities, leading to inefficiencies that consolidation could address [5]. Investment Needs - The U.S. water infrastructure is deteriorating, with an estimated $1.25 trillion needed over the next 20 years for upgrades, while the Bipartisan Infrastructure Law has committed $50 billion for improvements [6]. - The American Society of Civil Engineers rates U.S. drinking water infrastructure at C- and wastewater systems at D+, highlighting the urgent need for upgrades [6]. Market Performance - The Zacks Utility Water Supply industry has underperformed compared to the Zacks S&P 500 composite and the broader utilities sector over the past 12 months, gaining 6.1% versus 12.5% for the sector and 12.4% for the S&P 500 [11]. - The industry is currently trading at a trailing 12-month EV/EBITDA of 15.89X, lower than the S&P 500's 17.94X and the sector's 15.92X [14]. Earnings Outlook - The Zacks Utility Water Supply industry has a positive earnings outlook, with an aggregate earnings estimate of $2.27 indicating year-over-year growth of 7.1% [9]. - The Zacks Industry Rank 97 places the industry in the top 40% of over 243 Zacks industries, suggesting bullish prospects for the near term [7][8]. Company Highlights - **American States Water Company (AWR)**: Plans to invest $180-$210 million in 2025 for infrastructure upgrades, with a long-term earnings growth rate of 5.65% and a current dividend yield of 2.75% [18][19]. - **American Water Works Company (AWK)**: Aims to invest $3.3 billion in 2025 and $19-$20 billion from 2026 to 2030 for infrastructure strengthening, with a long-term earnings growth rate of 6.77% and a current dividend yield of 2.49% [23][24]. - **Essential Utilities Inc. (WTRG)**: Plans to invest $7.8 billion from 2025 to 2029 for pipeline rehabilitation, with a current dividend yield of 3.42% [27][28].

Group 1: Market Overview - Tech stocks that had been driving the market rally are now weighing on Wall Street, with significant declines observed in major indices such as the Dow, S&P 500, and Nasdaq [1][4] - Concerns over high valuations and ongoing market volatility have led investors to shun riskier assets, particularly in the tech sector [1][6] Group 2: Defensive Investment Recommendations - In light of market volatility, it is advisable to invest in defensive stocks from the utilities sector, such as American States Water Company, Ameren Corporation, and Entergy Corporation, all of which carry a Zacks Rank 2 (Buy) [2] - The recommended approach is to focus on low-beta stocks with high dividend yields and favorable Zacks rankings [3] Group 3: Company Profiles - **American States Water Company (AWR)**: Provides fresh water, wastewater services, and electricity, with an expected earnings growth rate of 4.7% for the current year and a beta of 0.64, alongside a dividend yield of 2.73% [8][9] - **Ameren Corporation (AEE)**: Generates and distributes electricity and natural gas, serving nearly 2.4 million electric and over 900,000 natural gas customers, with an expected earnings growth rate of 7.8% and a beta of 0.50, offering a dividend yield of 2.70% [10][12] - **Entergy Corporation (ETR)**: Engaged in electric power production and retail distribution, with a generating capacity of 30,000 MW, an expected earnings growth rate of 6.9%, a beta of 0.63, and a dividend yield of 2.68% [13]

Core Viewpoint - American States Water (AWR) is focusing on infrastructure upgrades to ensure reliable services for its growing customer base, supported by long-term contracts with military bases, making it a solid investment in the Zacks Utility - Water Supply industry [1][3]. Growth Outlook - The Zacks Consensus Estimate for AWR's 2025 earnings per share (EPS) has increased by 1.22% to $3.32 over the past 60 days [3]. - The estimated revenue for 2025 is $629 million, indicating a growth of 5.63% from the 2024 reported figure [3]. - AWR's long-term earnings growth rate is projected at 5.65% [3]. - The company has beaten earnings estimates in three of the last four quarters, with an average surprise of 3.63% [3]. Return to Shareholders - AWR has been consistently increasing shareholder value through dividends, currently paying a quarterly dividend of $0.50 per share, leading to an annualized dividend of $2.02 [4]. - The current dividend yield stands at 2.68%, outperforming the Zacks S&P 500 composite average of 1.51% [4]. Infrastructure Investment - AWR is planning to invest $573.1 million from 2025 to 2027 to enhance its infrastructure and operations [6]. - New rate filings and subsequent increases are expected to help recover the investment costs and support ongoing infrastructure upgrades [6]. Debt Structure - AWR's total debt to capital ratio is 47.54%, which is better than the industry average of 60.90% [7]. - The times interest earned (TIE) ratio is 4.5, indicating the company can comfortably meet its interest payment obligations [7]. Stock Performance - Over the past month, AWR's shares have decreased by 0.3%, while the industry has seen a decline of 1.2% [8].