This is the fourth consecutive year American Water has increased
VOORHEES, N.J.--(BUSINESS WIRE)--May. 11, 2012--
American Water Works Company, Inc. (NYSE: AWK) announced today that its
Board of Directors increased its quarterly cash dividend payment from
$0.23 to $0.25 per share, an 8.7 percent increase. The company also
refined its dividend policy so that future increases in dividends will
be at a rate similar to the increase in earnings per share growth, with
a payout ratio between 50 to 60 percent of net income.
“American Water has consistently said that as our net income and EPS
grow, so will our cash dividends,” said Jeff Sterba, president and CEO
of American Water. “Our strong financial performance over the past
years, which includes double-digit growth in net income and earnings per
share; our belief in the ability to sustain 7 to 10 percent long-term
growth; and striking the right balance between reinvestment in our
regulated operations and cash dividend payments were the drivers of the
Board’s decision to increase our dividend and refine our policy so
payouts more closely track with financial performance.”
This is the fourth consecutive year American Water has increased its
“Our objective has always been to have a dividend payment practice that
is predictable, stable and growing,” added Sterba.
The increase will be reflected in the regular quarterly cash dividend,
which is payable on September 3, 2012 to all shareholders of record as
of July 6, 2012.
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 at 877-310-7174 or by
visiting the Investor Relations’ page at www.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.
About American Water
Founded in 1886, American Water is the largest publicly traded U.S.
water and wastewater utility company. With headquarters in Voorhees,
N.J., the company employs approximately 7,000 dedicated professionals
who provide drinking water, wastewater and other related services to an
estimated 15 million people in more than 30 states and parts of Canada.
More information can be found at www.amwater.com.
here to subscribe to Mobile Alerts for American Water.
Source: American Water Works Company, Inc.
American Water Works Company, Inc.
President, Investor Relations
Vice President, Communications