In September, a dividend stock from Wall Street's top performers emerges as a tempting investment opportunity for buyers – a corporation that might be foreign to the majority of investors.

York Water: A Century-Old Dividend Stock with a Bright Future

York Water, a relatively unknown dividend stock, has been steadily serving South-Central Pennsylvania as a water and wastewater utility for over two centuries. With a continuous dividend history that spans 209 years, York Water stands out as the company with the longest continuous dividend history among public companies.

Operating as a monopoly in the areas it serves, due to the high costs associated with laying pipeline, York Water's demand for water and wastewater is predictable, making it easier for the company to plan new projects and acquisitions. This predictability extends to York Water's operating cash flow, which is a testament to its regulated operating model.

York Water's dividend yield currently stands at 2.8%, making it an attractive investment for income-focused investors. The company filed a rate hike request in late May, following $145 million in capital investments since its last rate increase request in 2022. If approved, York Water's annual revenue would jump by $24.2 million, or 32% (relative to its full-year revenue in 2024).

The stock market is nearing its second-priciest valuation when back-tested more than 150 years. Despite this, buying and holding high-quality dividend stocks has been a consistently successful strategy for growing wealth. Over a 51-year stretch (1973-2024), dividend stocks more than doubled the average annual return of non-payers, with less volatility than the benchmark S&P 500.

York Water is one of the around two dozen public companies that have paid a continuous dividend for at least a century. There are also 56 companies that qualify as a Dividend King, meaning they've increased their base annual payout for at least 50 years. Wall Street's greatest dividend stock may very well be York Water, a company that could be the largest lesser-known dividend stock on Wall Street.

It's worth noting that the Pennsylvania Public Utility Commission oversees York Water's rates, ensuring fair and reasonable pricing for its customers. As of Aug. 29, York Water is trading at less than 20 times forward-year earnings, representing a 33% discount to its average forward price-to-earnings multiple over the last half-decade.

Investing in York Water could be a smart move for those seeking steady income and long-term growth. With its rich history, predictable demand, and attractive valuation, York Water is a dividend stock worth considering for any income-focused portfolio.