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California Water Service downgraded to hold as rising rates reduce its appeal despite strong dividend growth.

Analyst Insights
26 Jul 2026
Seeking Alpha
View Source
Bearish
pluang ai news

California Water Service Group, a reliable dividend grower with 58 consecutive annual increases, has seen its stock outperform peers this year. However, rising interest rates and a shrinking yield spread versus treasuries have made it less attractive as a bond proxy at current prices. Analyst Ian Bezek downgraded the stock to hold, recommending waiting for a lower entry point near $40 with a 3% yield amid current macroeconomic conditions. The company, founded in 1926, serves multiple states and recently celebrated its 100th anniversary.

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