12 Best Small-Cap Dividend Stocks To Buy

8. H2O America (NASDAQ:HTO)

Number of Hedge Fund Holders: 23

Dividend Yield as of December 5: 3.51%

Market Cap as of December 5: $1.715B

H2O America (NASDAQ:HTO) is one of the best dividend stocks to buy. As of December 5, the average price target for HTO suggests an upside of 27%, however, the Street high indicates an upside of 38%.

Previously, according to an update dated November 19, H2O America’s subsidiary, San Jose Water Company, along with three other water utilities, was allowed to extend their 2026 Cost of Capital filing until May 1, 2027. The Executive Director of the California Public Utilities Commission (CPUC) allowed this deferment. Delaying the filings for one year allows these companies and the CPUC to relieve admin processing costs.

Tanya Moniz-Witten, the San Jose Water Company President, commented:

“This approval provides greater clarity and stability for our customers through 2027. We deeply appreciate the CPUC’s support and timely response, and we are confident this positions us well for continued success.”

Separately, H2O America (NASDAQ:HTO) reported its Q3 2025 financial results on October 27. To increase HTO’s presence in Texas, the company made headway on acquiring Quadvest, one of the biggest water and wastewater utilities in the area. Another development to boost its presence in Texas was the deal to obtain the Cibolo Valley wastewater system. HTO’s GAAP net income for Q3 came in at $45.1 million, up 17% compared to the prior-year quarter. Diluted EPS and operating revenue for the quarter stood at $1.27 and $240.6 million, an increase of 9% and 7% compared to the same quarter last year, respectively.

H2O America (NASDAQ:HTO) is a water utility company that produces, treats, and distributes water to homes and businesses in California, Connecticut, Maine, and Texas.