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 34 cents to 37.5 cents per share, an approximate 10 percent increase. The company has increased its dividend every year since its IPO in April 2008, and this increase represents the fourth consecutive year of double-digit dividend increases.
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.
“This increase continues our commitment to provide strong dividend growth aligned with our financial performance, while also providing needed investment in our systems for the benefit of our customers,” said Susan Story, president and CEO of American Water.
The increased dividend will be payable on June 1, 2016 to all shareholders of record as of May 9, 2016.
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.
Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. Marking its 130th anniversary this year, the company employs more than 6,700 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 at www.amwater.com.