VOORHEES, N.J.--(BUSINESS WIRE)--American Water Works Company, Inc. (NYSE: AWK) announced today that its Board of Directors increased its quarterly cash dividend payment from 37.5 cents to 41.5 cents per share, a 10.7 percent increase. The company has increased its dividend every year since its IPO in April 2008.
The increased payment is consistent with American Water’s dividend practice, which is to link dividend increases to earnings per share growth and target a payout ratio between 50 to 60 percent of net income.
“American Water continues our commitment to pay dividends that are aligned with our financial performance, and to strike the right balance between increased dividend payouts to shareholders and continued proactive investment in our systems on behalf of our customers to ensure clean, safe, reliable and affordable water services,” said Susan Story, president and CEO of American Water.
The increased dividend will be payable on June 1, 2017 to all shareholders of record as of May 5, 2017.
American Water offers a dividend reinvestment and direct stock purchase plan called American Water Stock Direct, which enables stockholders to reinvest cash dividends and purchase additional American Water common shares without any brokerage commissions or service charges. Stockholders and other persons may obtain a copy of the Plan prospectus and an enrollment form by contacting American Stock Transfer & Trust Company (“AST”) at 888-556-0423, visiting AST’s website at www.amstock.com, contacting American Water’s Investor Relations department at 877-310-7174 or by visiting the Investor Relations webpage located at http://ir.amwater.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. The offer is being made solely through the Plan prospectus.
With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly-traded water and wastewater utility company. The company employs more than 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 47 states and Ontario, Canada. More information can be found by visiting www.amwater.com.