Represents an increase of 10%
CAMDEN, 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 $0.50 to $0.55 per share, a 10% percent increase.
“American Water is continuing to focus on providing an essential service during the COVID-19 health emergency, while also delivering on our core strategies to provide clean, safe, reliable and affordable water and wastewater services for our customers for the long-term,” said Walter Lynch, president and CEO of American Water. “We understand that a secure and growing dividend is important to our shareholders, while striking the right balance with continued investment in our regulated operations.”
The increased dividend is consistent with American Water’s historical dividend practice, which is to align dividend increases with long-term earnings per share growth, and to provide for a target payout ratio between 50 to 60 percent of net income.
The increased dividend will be payable on June 2, 2020 to all shareholders of record as of May 12, 2020.
American Water offers a dividend reinvestment and direct stock purchase plan called American Water Stock Direct, which enables shareholders to reinvest cash dividends and purchase additional shares of American Water common stock without any brokerage commissions or service charges. Shareholders 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.astfinancial.com, contacting American Water’s Investor Relations department at 856-566-4005 or by visiting the Investor Relations webpage located at 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.
About American Water
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 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing. For more information, visit amwater.com and follow American Water on Twitter, Facebook and LinkedIn.