American States Water Co. on Tuesday said that it will implement a two-for-one stock split this summer.
The San Dimas water and electricity utility said it wanted to keep its stock within the reach of a “broad range of investors.” The company’s share price, which on Tuesday closed up 1 percent to $54.95 on the New York Stock Exchange, is up 53 percent from its 52-week low.
The split on Aug. 15 will increase the total number of common shares outstanding to 38.6 million. The board also approved a 14 percent increase to its quarterly dividend, to 40.5 cents a share. The dividend will be payable on Sept. 3 to shareholders of record as of Aug. 15, and be applied prior to the stock split.
“Both the stock split and the dividend increase enhance our ability to attract capital in the future to fund necessary infrastructure investments in our utility operations,” Chief Executive Robert Sprowls said in a statement.
American States businesses include American States Utility Services and Golden State Water. The Business Journal reported earlier this year that investors have been impressed by the company’s ability to win long-term government contracts to maintain and upgrade water and wastewater services at military bases around the country. The company’s core operations are in 10 counties throughout California.