American Water Increases Quarterly Dividend by 12 Percent
This is the fifth consecutive year American Water has increased its dividend
VOORHEES, N.J.--(BUSINESS WIRE)-- American Water Works Company, Inc. (AWK) announced today that its Board of Directors increased its quarterly cash dividend payment from $0.25 to $0.28 per share, a 12 percent increase. This is the fifth consecutive year, since the companys IPO in April 2008, that the quarterly dividend has been raised.
The increased payment is consistent with American Waters 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.
Last year American Water committed to establishing dividends that are more aligned with our financial performance, said Jeff Sterba, president and CEO of American Water. On a compounded basis, our annualized earnings have increased by 14 percent from 2010 to 2012. This dividend increase is in recognition of this earnings momentum and demonstrates our commitment to striking the right balance between increased dividend payouts to shareholders and continued proactive investment in our systems on behalf of our customers."
The increased dividend will be payable on June 3, 2013 to all shareholders of record as of May 24, 2013.
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 ASTs website at www.amstock.com, contacting American Waters Investor Relations at 877-310-7174 or by visiting the Investor Relations page at www.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
Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs approximately 6,700 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 14 million people in more than 30 states and parts of Canada. More information can be found at www.amwater.com.
American Water Works Company, Inc.
Vice President, Investor Relations
Vice President, Communications
Source: American Water Works Company, Inc.Copyright Business Wire 2013