Core Insights - Consolidated Water Co. Ltd. (CWCO) has approved a 47.4% year-over-year increase in its quarterly dividend rate to 14 cents per share, payable on July 31, 2025 [1][9] - The new annualized dividend rate is 56 cents per share, with a current dividend yield of 2.26%, outperforming the S&P 500 average of 1.57% [2] - The company's strong financial performance across its segments has led to increased cash flow, enabling the dividend hike [3] Financial Performance - CWCO has raised its dividend three times in the last five years, with an annualized dividend growth rate of 4.74% [2] - The company has experienced stable performance in its retail, bulk, and manufacturing segments, contributing to the dividend increase [9] Growth Opportunities - Consolidated Water operates 10 desalination plants with a capacity of 26.2 million gallons per day and is exploring new markets for expansion [4] - A $204 million design-build-operate project in Hawaii is underway, expected to drive revenue growth in the Services segment in 2026 and 2027 [4][9] - The company aims to expand into complementary service industries through joint ventures, strategic alliances, and acquisitions [5] Market Outlook - The U.S. desalination market is projected to reach $2.6 billion by 2028, growing at a CAGR of 8.3%, which aligns with CWCO's focus on desalination [6] - The company is positioned to benefit from rising demand for low-cost installation and advanced membrane technology for water treatment [6] Industry Context - Domestic-focused, rate-regulated water utilities are stable performers, allowing for dividend hikes and share buybacks [8] - Other water utilities have also raised their dividend rates in 2025, indicating a positive trend in the industry [8][10] Stock Performance - CWCO's shares have increased by 17.6% in the past month, contrasting with a 2.7% decline in its industry [11]