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California Water Service Group (CWT) has drawn investor attention after declaring its 324th consecutive quarterly dividend, with the Board signaling an 8% lift in the planned annual payout to $1.34 per share.
The new quarterly dividend of $0.335 per common share is scheduled for payment on February 20, 2026, to shareholders of record as of February 9, 2026, reinforcing the company’s ongoing cash return policy.
See our latest analysis for California Water Service Group.
At a share price of $44.94, recent momentum has tilted positive, with a 1 month share price return of 5.64% and a 7 day gain of 3.03%. However, the 3 month share price return of a 3.04% decline and a 3 year total shareholder return of a 20.89% decline point to a weaker longer term picture. At the same time, the dividend increase and the CEO’s involvement in the new CalCEO Council have kept the company on investors’ radar.
If this kind of steady, income focused story appeals to you, it could be a good moment to broaden your search and check out pharma stocks with solid dividends.
So with CWT offering a higher cash payout and the share price at $44.94 after mixed recent returns, is the market overlooking value in this regulated utility, or is it already factoring in future growth potential?
With California Water Service Group last closing at $44.94 against a narrative fair value of $51.67, the widely followed view suggests some upside is still on the table, built on long term infrastructure and regulatory themes.
Accelerating capital investment in water infrastructure and modernization, driven by increasing water scarcity, climate adaptation needs, and urban population growth, positions Cal Water to expand its regulated rate base by a projected ~12% CAGR. This is viewed as supporting sustained long term revenue and cash flow growth. Expansion into high growth areas such as Texas and the development of large scale reuse projects like Silverwood create a pathway for customer base expansion and incremental capital deployment, which is expected to be a key factor in future top line and earnings growth.
Want to see what kind of revenue growth, margin trajectory, and future P/E multiple need to line up for that fair value to hold? The narrative spells out a detailed path for earnings, capital spending, and the valuation multiple that would need to underpin the current $51.67 estimate.
Result: Fair Value of $51.67 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, that story can unravel if the California General Rate Case drags on, or if PFAS treatment and compliance costs land higher than regulators ultimately allow in customer rates.
Find out about the key risks to this California Water Service Group narrative.
While the narrative fair value points to potential upside, the current P/E of 19.6x sits below the Water Utilities industry average of 21.4x, yet above the fair ratio of 17.6x that our model suggests the market could move toward. That mix hints at some valuation support, but also downside risk if sentiment cools.
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:CWT P/E Ratio as at Feb 2026
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If you are not fully convinced by this view, or prefer to stress test the assumptions yourself, you can build a custom thesis and see how it stacks up with Do it your way.
A great starting point for your California Water Service Group research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
If CWT has sharpened your interest in income and defensiveness, do not stop here. Broaden your watchlist and give yourself more options to compare.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CWT.
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