On Monday, January 26, 2026, the Board of Directors of H2O America (NYSE: HTO) announced a quarterly dividend increase from $0.42 to $0.44 per share. The dividend will be payable on March 2, 2026, to shareholders of record as of February 9, 2026. This represents a 4.76% increase over the prior quarterly dividend.
Commenting on the announcement, Andrew F. Walters, Chief Executive Officer and incoming Chair of the Board effective February 1, 2026, stated:
“The action by our board to increase the annual dividend demonstrates its continuing confidence in H2O America’s long-term growth strategy. We are focused on making the infrastructure improvements necessary to deliver high-quality water reliably and affordably for our customers. Our team of trusted, passionate and socially responsible professionals is committed to providing exceptional service while protecting the environment, enhancing our communities and delivering value for shareholders.”
Current Dividend Yield and Income Impact
At today’s opening price of $53.04, this dividend increase raises H2O America’s forward dividend yield to approximately 3.32%, which is attractive for a regulated water utility with a long history of steady dividend growth.
As an owner of 100 shares of H2O America, this increase adds $5.96 to my projected annual net dividend income. The trend of recent years continued, with an annual increase of eight cents, which was fully in line with my expectations.
Long-Term Dividend Growth Track Record
H2O America is a Dividend Champion, boasting an impressive 58-year streak of dividend increases. According to Dividend Champions data, the company’s dividend growth rates are as follows:
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1-year: 5.0%
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3-year: 5.3%
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5-year: 5.6%
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10-year: 8.0%
This increase marks the first dividend raise I’ve received from HTO since initiating my position in October 2025. At the time of writing, HTO represents approximately 0.56% of my portfolio, contributing about 0.47% of my projected annual dividend income. Following this increase, my yield on cost stands at 3.70%.
Quick Valuation Take
At current levels, H2O America appears fairly valued to slightly expensive, which is typical for high-quality regulated water utilities. Investors are paying a premium for stability, predictable cash flows, and a decades-long record of dividend growth. While not a bargain, the valuation remains reasonable for long-term income investors seeking reliability.
Dividend Safety and Outlook
HTO’s dividend appears very secure, supported by regulated operations, stable demand, and predictable earnings. The company’s multi-decade dividend growth streak reflects a conservative payout policy and disciplined capital investment strategy. Barring major regulatory or interest-rate disruptions, HTO’s dividend outlook remains stable with modest, steady growth potential.
Final Thoughts
This dividend increase reinforces H2O America’s position as a dependable dividend growth holding within my portfolio. While growth is moderate, the combination of stability, consistency, and a long track record makes HTO a solid long-term income investment.
Summary of 2026 Dividend Increases / Cuts
Full Disclosure: Long HTO
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