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.
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