The company has increased its dividend every year since IPO in 2008
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.
"American Water continues our commitment to pay dividends that are
aligned with our financial performance," said
The increased dividend will be payable on
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
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. With headquarters in
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Vice President, Investor Relations
Vice President, Communications
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