CAMDEN, N.J. - American Water (NYSE:AWK) Works Company, Inc. (NYSE: AWK), the largest regulated water and wastewater utility in the United States, has declared a quarterly cash dividend of $0.7650 per share. The dividend is payable on December 3, 2024, to shareholders of record as of November 12, 2024. This announcement, made today, is in line with the increased annualized dividend that was previously approved and disclosed on May 1, 2024.
The company also reminded shareholders of the American Water Stock Direct plan, which allows for the reinvestment of cash dividends and the purchase of additional shares without brokerage commissions or service charges. Detailed information about this plan can be obtained from Equiniti Trust Company or through American Water's Investor Relations.
Founded in 1886, American Water provides essential water and wastewater services to over 14 million people across 14 states and 18 military installations. The company employs approximately 6,500 professionals who focus on delivering safe, clean, and affordable drinking water.
The press release emphasized that this communication is not an offer to sell or a solicitation of an offer to buy any securities; such offers are made solely through the Plan prospectus.
This dividend declaration reflects American Water's commitment to providing value to its shareholders and is consistent with its long-standing financial strategy. The information for this article is based on a press release statement from American Water.
In other recent news, American Water has seen significant developments. The company has announced robust earnings for the first half of 2024, raising its yearly earnings per share guidance to $5.25-$5.30. Furthermore, the company's acquisition of Butler Area Sewer Authority's wastewater assets has been approved, propelling a $230 million deal forward.
However, analysts at Jefferies have initiated a rating of Underperform for the company, citing concerns over earnings per share growth and balance sheet pressures. In addition, American Water has been dealing with a cybersecurity incident, but has taken steps to safeguard its systems and customer data.
The California Public Utilities Commission has approved California American Water's acquisition of the Mesa del Sol water system, aiming to provide clean and reliable water to approximately 15 households in the Corral de Tierra area. The completion of the acquisition is anticipated in early 2025, following the construction of a physical interconnection and other system upgrades. These are the recent developments for American Water.
InvestingPro Insights
American Water Works Company's recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 2.2% and has demonstrated impressive dividend growth of 8.13% over the last twelve months as of Q2 2024. This commitment to increasing shareholder value is further underscored by an InvestingPro Tip, which notes that American Water "has raised its dividend for 10 consecutive years."
The company's financial health appears robust, with a market capitalization of $26.51 billion and revenue of $4.359 billion over the last twelve months as of Q2 2024. American Water's profitability is also noteworthy, as highlighted by another InvestingPro Tip stating that the company has been "profitable over the last twelve months."
For investors seeking more comprehensive insights, InvestingPro offers an additional 5 tips for American Water Works Company, providing a deeper understanding of the company's financial position and market performance.
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