American Water Works Company, Inc. (NYSE:AWK) Announces Quarterly Dividend of $0.90

Key Points

• $0.895 quarterly dividend announced, payable June 2 to shareholders of record May 12 (ex-dividend May 12); this is an 8.2% increase from the prior quarterly payout and implies an annual yield of about 2.7%.
• The company has raised its dividend every year for the last 18 years and has a payout ratio around 53.9%, while analysts expect roughly $6.60 EPS next year, suggesting the ~$3.31 annual dividend remains covered by earnings.
• American Water missed the latest quarter's estimates, reporting $1.01 EPS vs. $1.13 expected and $1.21B revenue vs. $1.28B expected; the stock trades near $132 with a P/E of about 23.2 and a beta of 0.74.

American Water Works Company, Inc. (NYSE:AWK - Get Free Report) announced a quarterly dividend on Wednesday, April 29th. Investors of record on Tuesday, May 12th will be given a dividend of 0.895 per share by the utilities provider on Tuesday, June 2nd. This represents a c) annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, May 12th. This is a 8.2% increase from American Water Works's previous quarterly dividend of $0.83.

American Water Works has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 18 years. American Water Works has a payout ratio of 53.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect American Water Works to earn $6.60 per share next year, which means the company should continue to be able to cover its $3.31 annual dividend with an expected future payout ratio of 50.2%.

American Water Works Stock Performance

NYSE:AWK traded down $0.59 during mid-day trading on Wednesday, hitting $132.08. 1,810,318 shares of the stock were exchanged, compared to its average volume of 1,826,253. The stock has a market capitalization of $25.79 billion, a price-to-earnings ratio of 23.21, a price-to-earnings-growth ratio of 2.91 and a beta of 0.74. The firm's 50-day simple moving average is $135.09 and its 200 day simple moving average is $132.69. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.44 and a current ratio of 0.46. American Water Works has a fifty-two week low of $121.28 and a fifty-two week high of $150.51.

American Water Works (NYSE:AWK - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.01 earnings per share for the quarter, missing the consensus estimate of $1.13 by ($0.12). The firm had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.28 billion. American Water Works had a return on equity of 10.38% and a net margin of 21.61%. As a group, equities analysts anticipate that American Water Works will post 6.09 EPS for the current fiscal year.

American Water Works Company Profile

American Water Works Company, Inc NYSE: AWK is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company's operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.

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