American States Water offers steady dividend growth and 10%+ annual returns amid utility sector stability.

American States Water (AWR) provides essential water and electric utility services with a 71-year streak of dividend growth. The company is investing $573.1 million through 2027 to grow its rate base by 11.3% while maintaining a strong A credit rating. Shares currently trade at a 12% discount to a fair value of $89, with a forward P/E of 21.1 compared to its 10-year average of 32.3. Projected earnings per share growth of 7.3% and dividend growth of 8% support an expected total annual return above 10%, though risks include drought and cyber threats.