American Water Increases Quarterly Dividend by 8.7 Percent
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.”
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