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Why Should Investors Add California Water Service to Their Portfolios?
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Key Takeaways
CWT benefits from rising demand, acquisitions, and investments, boosting financial performance.
California Water Service plans $760M and $690M investments in 2026 and 2027 for efficiency.
CWT has 324 straight dividends, 2.98% yield, and lower debt-to-capital than the industry.
California Water Service Group (CWT - Free Report) is benefiting from rising demand driven by an expanding customer base. Contribution from strategic acquisitions and organic assets is boosting its financial performance. The company makes capital investments to modernize and replace aging systems, enhancing service reliability and providing high-quality services to customers.
The Zacks Consensus Estimate for CWT’s 2026 and 2027 earnings have moved up 1.19% and 4.20%, respectively, over the past 60 days. The Zacks Consensus Estimate for CWT’s 2026 and 2027 sales is pinned at $1.07 billion and $1.13 billion, indicating year-over-year growth of 7.28% and 5.74%, respectively.
CWT’s long-term (three to five years) earnings growth rate is 10.62%.
CWT’s Stable Investments
California Water Service makes capital investments in infrastructure development and maintenance, enabling it to provide safe, high-quality service throughout California, Washington and New Mexico. CWT aims to invest $760 million and $690 million in 2026 and 2027, respectively, to enhance its operational efficiency and support long-term financial performance.
CWT’s Capital Return Program
California Water Service has been constantly rewarding its shareholders with dividend hikes, reflecting stable earnings and strong cash flow. In January 2026, the company’s board approved its 324th consecutive quarterly dividend, including a 10-cents increase.
California Water Service has a dividend yield of 2.98% versus the Zacks S&P 500 composite’s average of 1.39%. The company’s current annualized dividend is $1.34 per share.
CWT’s Debt Position
CWT’s times interest earned ratio (TIE) at the end of the fourth quarter of 2025 was 2.6. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, reflects how operating earnings cover interest expenses and highlights overall financial stability.
CWT’s total debt-to-capital is 48.67%, which is lower than the industry’s 53.34%, indicating stronger financial stability and lower leverage risk.
Price Performance of CWT
In the past month, California Water Service shares have rallied 1.2% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same sector are American States Water (AWR - Free Report) , CMS Energy (CMS - Free Report) and Essential Utilities (WTRG - Free Report) , each carrying a Zacks Rank #2.
AWR, CMS and WTRG dividend yields are 2.66%, 2.93% and 3.51%, respectively.
The Zacks Consensus Estimate for American States Water, CMS Energy and Essential Utilities 2026 EPS is pegged at $3.59, $3.86 and $2.25, suggesting year-over-year growth of 6.53%,6.93% and 2.27%, respectively.
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Why Should Investors Add California Water Service to Their Portfolios?
Key Takeaways
California Water Service Group (CWT - Free Report) is benefiting from rising demand driven by an expanding customer base. Contribution from strategic acquisitions and organic assets is boosting its financial performance. The company makes capital investments to modernize and replace aging systems, enhancing service reliability and providing high-quality services to customers.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CWT’s Growth Projection
The Zacks Consensus Estimate for CWT’s 2026 and 2027 earnings have moved up 1.19% and 4.20%, respectively, over the past 60 days. The Zacks Consensus Estimate for CWT’s 2026 and 2027 sales is pinned at $1.07 billion and $1.13 billion, indicating year-over-year growth of 7.28% and 5.74%, respectively.
CWT’s long-term (three to five years) earnings growth rate is 10.62%.
CWT’s Stable Investments
California Water Service makes capital investments in infrastructure development and maintenance, enabling it to provide safe, high-quality service throughout California, Washington and New Mexico. CWT aims to invest $760 million and $690 million in 2026 and 2027, respectively, to enhance its operational efficiency and support long-term financial performance.
CWT’s Capital Return Program
California Water Service has been constantly rewarding its shareholders with dividend hikes, reflecting stable earnings and strong cash flow. In January 2026, the company’s board approved its 324th consecutive quarterly dividend, including a 10-cents increase.
California Water Service has a dividend yield of 2.98% versus the Zacks S&P 500 composite’s average of 1.39%. The company’s current annualized dividend is $1.34 per share.
CWT’s Debt Position
CWT’s times interest earned ratio (TIE) at the end of the fourth quarter of 2025 was 2.6. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, reflects how operating earnings cover interest expenses and highlights overall financial stability.
CWT’s total debt-to-capital is 48.67%, which is lower than the industry’s 53.34%, indicating stronger financial stability and lower leverage risk.
Price Performance of CWT
In the past month, California Water Service shares have rallied 1.2% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same sector are American States Water (AWR - Free Report) , CMS Energy (CMS - Free Report) and Essential Utilities (WTRG - Free Report) , each carrying a Zacks Rank #2.
AWR, CMS and WTRG dividend yields are 2.66%, 2.93% and 3.51%, respectively.
The Zacks Consensus Estimate for American States Water, CMS Energy and Essential Utilities 2026 EPS is pegged at $3.59, $3.86 and $2.25, suggesting year-over-year growth of 6.53%,6.93% and 2.27%, respectively.