American States Water Company (AWR) will raise its quarterly dividend by 8 percent to $0.242 per share in 2016. The utility company has paid a dividend since 1931 and increased its payout annually since 1954.

"This substantial increase in our quarterly dividend reflects our Board's confidence in the sustainability of the company's earnings at both our Golden State Water Company and American States Utility Services, Inc. subsidiaries, and the prospects for our future and its desire to have a payout ratio that is more in line with utility peers," said Robert J. Sprowls, President and CEO of American States Water Company. "We believe that prudently increasing dividends enhances our ability to attract capital in the future to fund necessary infrastructure investments in our utility operations. We are also confident that our contracted services business will be a continued source of dividends for our shareholders," Sprowls continued.

Dividends on the common shares will be payable on December 1, 2016 to shareholders of record at the close of business on November 15, 2016. American States Water Company has a new dividend yield of 2.5%.

American States Water Company is the parent of Golden State Water Company and American States Utility Services, Inc. Through its utility subsidiary, Golden State Water Company, AWR provides water service to customers located throughout 10 counties in Northern, Coastal and Southern California. The company also distributes electricity to customers in the City of Big Bear and surrounding areas in San Bernardino County, California. Through its contracted services subsidiary, American States Utility Services, Inc., the company provides operations, maintenance and construction management services for water and wastewater systems located on military bases throughout the country under 50-year privatization contracts with the U.S. government.