CAMDEN, N.J. – American Water (NYSE:) Works Company, Inc. (NYSE:AWK), the largest regulated water and wastewater utility in the United States, with a market capitalization of $25.75 billion, announced today that its board of directors has declared a quarterly cash dividend of $0.7650 per share. The dividend is scheduled to be paid on March 4, 2025, to shareholders of record as of February 7, 2025. According to InvestingPro data, the company has maintained dividend payments for 17 consecutive years, with an impressive 8.13% dividend growth over the last twelve months.
This dividend payment follows the pattern set by the annualized dividend increase approved by the board and announced on May 1, 2024. The company also reminded investors of its American Water Stock Direct plan, which allows shareholders to reinvest dividends and purchase additional shares without brokerage commissions or service charges. InvestingPro analysis reveals the company has raised its dividend for 11 consecutive years, with subscribers having access to additional dividend insights and financial health metrics in the comprehensive Pro Research Report.
American Water, with a history dating back to 1886, serves more than 14 million people across 14 states and 18 military installations. The company emphasizes its commitment to providing safe, clean, and affordable water services, which is supported by a workforce of approximately 6,500 professionals. The company’s strong market position is reflected in its solid financial performance, with a 9.24% revenue growth and a P/E ratio of 26.2, though InvestingPro Fair Value analysis suggests the stock is currently trading slightly above its intrinsic value.
The press release clarified that this announcement does not constitute an offer to sell securities and that any such offer is made solely through the Plan prospectus. Interested parties can obtain more information about the dividend reinvestment plan by contacting Equiniti Trust Company or by visiting American Water’s Investor Relations webpage.
This news is based on a press release statement from American Water and has not been independently verified. The company’s shares are traded on the New York Stock Exchange under the ticker symbol AWK. For more details, individuals can contact the company’s investor relations and media contacts as provided in the press release.
In other recent news, American Water Works Company, Inc. has been the subject of a positive outlook from UBS, which upgraded the company’s stock from Neutral to Buy. This follows a $1 billion increase in the company’s capital plan and insights from recent management meetings. UBS analysts express confidence in American Water’s ability to maintain consistent 8% growth in earnings per share (EPS) and dividends per share (DPS) through 2028, even with the upcoming expiration of interest income from secured notes in 2027.
The company’s recent earnings report showed an increase in EPS to $1.80 from $1.66. American Water also reaffirmed its full-year 2024 EPS guidance and projected substantial growth for 2025, driven by capital investments and strategic acquisitions. The acquisition of Butler Area Sewer Authority added 15,000 customers, contributing to nearly 50,000 new customers in 2024.
Furthermore, New Jersey American Water, a subsidiary of American Water, recently acquired the Borough of Manville’s wastewater collection system, adding approximately 4,300 customers to its service base. This is part of the company’s strategic growth plan. These are just a few of the recent developments for American Water, demonstrating its robust financial health and strategic growth initiatives.
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