California Water Service Group Raises Annual Dividend 10.7% to $1.24 Per Share

California Water Service Group (NYSE: CWT), a regulated water utility serving California, Hawaii, Washington, and Texas, declared an annual dividend of $1.24 per common share, an increase of 10.71% from the prior year's $1.12. Read more dividend announcements.

The 2025 dividend includes a one-time special dividend of $0.04 per share. This marks the company's 58th consecutive year of dividend payments, bringing its five-year compound annual dividend growth rate to 7.7%.

The company also announced that its 2026 annual dividend will be indicative of $1.34 per share, representing the 59th consecutive annual increase and an 8.1% rise over the 2025 total. Shareholders received quarterly payments of $0.30 per share throughout 2025, bringing the 323rd consecutive quarterly dividend payment.

Record Infrastructure Investment

California Water Service invested a record $517.0 million in water system infrastructure during 2025, a 9.8% increase over 2024 spending. Fourth-quarter capital investment totaled $152.3 million.

The company's rate base is estimated to reach over $3.3 billion by 2027, driven by continued infrastructure spending that is outpacing depreciation by a ratio of approximately 4-to-1.

2025 Financial Results

For the full year 2025, California Water Service reported net income of $126.8 million, or $2.16 per diluted share, compared to $128.2 million, or $2.15 per diluted share, in 2024. Operating revenue declined to $949.3 million from $1.00 billion a year earlier.

The company attributed the revenue decline to third-year rate case cycle timing and significantly wetter than normal weather in December. Fourth-quarter net income fell to $11.5 million, or $0.19 per diluted share, from $19.7 million, or $0.33 per diluted share, in the prior-year quarter.

California Water Service retained its return on equity of 10.27% through January 2028, one of the highest among regulated U.S. water utilities. The company also maintained its S&P Global rating of A+/Stable.

Business Development Activity

The utility completed rate cases in Hawaii and Washington during 2025, adding $5.1 million in authorized revenue. The company also announced plans to acquire the remaining membership interests of BVRT Utility Holding Company LLC, becoming the sole owner of seven subsidiary water and wastewater utilities in the south Austin-San Antonio corridor.

California Water Service entered into an agreement to own and operate wastewater and recycled water systems for a master-planned development in San Bernardino County, California. The project will serve 500 customer connections initially, with potential expansion to 15,000 connections at full buildout.

The company issued $170.0 million of notes and $200.0 million of bonds through private placement transactions during the year. Chairman and CEO Martin A. Kropelnicki said the company expects to receive a Proposed Decision on its 2024 California General Rate Case within days or weeks, with potential final approval at the California Public Utilities Commission's April 9 meeting.