California Water Service Group Board of Directors Declares 320th Consecutive Quarterly Dividend and Announces One-Time Special Dividend

Rhea-AI Summary

California Water Service Group (NYSE: CWT) has announced its 320th consecutive quarterly dividend of $0.30 per common share, representing an $0.08 annual increase to yield $1.20 annually. Additionally, the Board declared a one-time special dividend of $0.04 per common share. Both dividends will be payable on February 21, 2025, to stockholders of record as of February 10, 2025.

This marks the company's 58th consecutive year of dividend increases. The special dividend was implemented to compensate for the moderated 2023 annual dividend due to delays in the 2021 General Rate Case. The company expects the 2025 anticipated annual dividend to align with market expectations.

Positive

• 58th consecutive year of dividend increases
• Quarterly dividend increased by $0.08 annually to $1.20
• Additional one-time special dividend of $0.04 per share
• 320 quarters of consecutive dividend payments showing strong financial stability

Negative

• Previous dividend moderation in 2023 due to delayed General Rate Case

Insights

Financial Analyst

California Water Service Group's latest dividend announcement carries multiple positive signals for investors. The $0.08 annual increase to $1.20 per share, coupled with a special dividend of $0.04, demonstrates robust financial management and shareholder-focused capital allocation.

The special dividend is particularly noteworthy as it addresses the moderated 2023 dividend growth due to the delayed 2021 General Rate Case. This proactive approach to compensating shareholders for previous constraints shows management's commitment to maintaining competitive shareholder returns while balancing regulatory considerations.

The company's track record of 58 consecutive years of dividend increases places it among the elite 'Dividend Kings' - companies that have increased dividends for over 50 years. In the utilities sector, where stable income is a primary investment thesis, this consistency is particularly valuable. The current dividend structure, accounting for the annual increase, suggests a forward yield that remains competitive within the regulated utility space while maintaining sustainable payout ratios.

The timing and structure of this announcement, combining both a substantial regular dividend increase and a special dividend, indicates management's confidence in future cash flows and rate case outcomes. For utility investors, this balanced approach to shareholder returns, while maintaining regulatory compliance, exemplifies effective capital management in a regulated environment.

SAN JOSE, Calif., Jan. 29, 2025 (GLOBE NEWSWIRE) -- At its meeting on January 29, 2025, the California Water Service Group (NYSE: CWT) (Company) Board of Directors (Board) declared the company's 320th consecutive quarterly dividend in the amount of $0.30 per common share, this reflects an $0.08 annual increase that is expected to yield an annual dividend of $1.20. In addition, the Board declared a one-time special dividend in the amount of $0.04 per common share. Both the quarterly dividend and the special one-time dividend will be payable on February 21, 2025, to stockholders of record as of the close of business on February 10, 2025.

“We are pleased to be in a position to increase our annual dividend for the 58^th consecutive year. Furthermore, we believe that a special, one-time dividend of $0.04 per share is appropriate given our decision to moderate our 2023 annual dividend due to the delay in our 2021 General Rate Case. We believe our 2025 anticipated annual dividend will bring us in line with market expectations, and we remain committed to providing value to all of our stakeholders."

About California Water Service Group
California Water Service Group is the parent company of regulated utilities California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, as well as Texas Water Service, a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas. California Water Service Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.

Forward Looking Statements
This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management’s beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results to be different than those expected or anticipated include but are not limited to those described under the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K, as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact

James P. Lynch
408-367-8200

Shannon Dean
sdean@calwater.com
408-367-8243

FAQ

What is the new quarterly dividend amount for California Water Service Group (CWT)?

The new quarterly dividend amount is $0.30 per common share, which yields an annual dividend of $1.20.

When will CWT's quarterly and special dividends be paid?

Both the quarterly and special dividends will be paid on February 21, 2025, to stockholders of record as of February 10, 2025.

How much is CWT's special one-time dividend?

CWT declared a special one-time dividend of $0.04 per common share.

How many consecutive years has CWT increased its dividend?

CWT has increased its dividend for 58 consecutive years.

Why did CWT issue a special dividend in 2025?

CWT issued the special dividend to compensate for moderating their 2023 annual dividend due to delays in their 2021 General Rate Case.

How many consecutive quarterly dividends has CWT paid?

CWT has paid 320 consecutive quarterly dividends, demonstrating a long history of consistent shareholder returns.