California Water Service Group

Five Dividend Kings—companies with at least 50 consecutive years of dividend increases—beat second-quarter earnings estimates, making them defensive picks in a frothy market. The 58 companies that made the cut for the 2026 Dividend Kings list have increased their dividends for 50 consecutive years. American States Water posted Q2 EPS of $1.09, up from $0.87 a year earlier, and raised its quarterly dividend by 8.2%, extending its streak to 70 years. California Water Service reported net income of $56.5 million, or $0.93 per share, up from $42 million, backed by new rate cases and infrastructure investments, and has raised its dividend for 77 years. Coca-Cola, a long-time Warren Buffett holding, reported second-quarter revenue of $13.37 billion and comparable EPS of $0.97, beating expectations, and raised its full-year earnings growth forecast, marking its 64th straight year of dividend increases. Federal Realty Investment Trust posted Q2 funds from operations of $1.88 per share, beating mid-guidance, with 96% occupancy and its 59th consecutive annual dividend increase. Procter & Gamble earned $1.43 per share, topping the $1.41 estimate, and continued its 70-year streak of dividend increases with a 3% raise in April.

California Water Service Group reported strong second quarter 2026 results, with net income rising to $56.5 million, or $0.93 per diluted share, compared to $42.2 million, or $0.71 per diluted share, in the same period last year. Revenue increased to $308.6 million from $265.0 million, driven in part by $15.3 million in interim rates memorandum account revenue related to the delayed 2024 California General Rate Case, $9.2 million of which pertained to the first quarter of 2026. The final decision on the 2024 California General Rate Case, received at the end of April, authorizes rate adjustments expected to increase company-wide revenue by $90.5 million in 2026, $43.2 million in 2027, and $48.9 million in 2028, and approves approximately $1.45 billion of pre-approved infrastructure investments through 2027. Operating expenses rose to $237.7 million from $213.1 million, with higher water production costs and other operations expenses partially offset by a $6.5 million decrease in depreciation and amortization due to lower California depreciation rates approved in the rate case. The company invested a record $147 million in infrastructure during the quarter and continues to make progress on its planned $218 million acquisition of Nexus Water Group's systems in Nevada and Oregon, which is expected to add about 36,000 customer equivalent residential units and approximately $109 million of rate base.

California Water Service Group plans to invest $1.45 billion through 2027 in water quality, system reliability, power-outage resilience, cybersecurity and long-term water supply projects, following approval from the California Public Utilities Commission for its subsidiary Cal Water. The decision allows the company to increase annual revenues by $90.5 million in 2026, $43.2 million in 2027 and $48.9 million in 2028. CWT expects infrastructure and other capital investments to support a more than 11.1% compound annual rate base growth, with the rate base projected to exceed $3.2 billion by 2027. The company plans to invest $627 million in 2026 and $667 million in 2027 to support rate base expansion and sustainable long-term earnings growth. The Zacks Consensus Estimate for 2026 and 2027 EPS indicates a year-over-year increase of 19.07% and 7.03%, respectively.

California Water Service has completed its purchase of Palm Mutual Water Company's water system assets and will now serve its customers through the Bakersfield District. The system serves an estimated 250 residents through 63 residential customer connections and is located two miles from Cal Water's Northeast Bakersfield Treatment Plant. Cal Water already served Palm Mutual through a master meter interconnection and plans to upgrade the system's infrastructure over time. The acquisition was approved by the California Public Utilities Commission in December 2025. Cal Water's Bakersfield District already serves about 445,600 people through approximately 120,000 service connections.