American Water Works Company (NYSE:AWK) Reports 8% Dividend Increase

editorial-team@simplywallst.com (Simply Wall St)

Tue, May 13, 2025, 4:51 PM 2 min read

American Water Works Company precocious reported its first-quarter results and declared an 8% dividend increase, some of which align with robust show metrics. The institution saw a quarterly income summation to $1,142 cardinal and nett income maturation to $205 million. These events apt supported the company's 7% banal terms emergence implicit the past quarter, further boosted by an optimistic net guidance for 2025. Although the broader marketplace roseate 4% during the aforesaid period, American Water's important net and dividend maturation provided further momentum to its stock terms performance.

Be alert that American Water Works Company is showing 2 informing signs successful our concern investigation and 1 of those is concerning.

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The first-quarter results and dividend summation reported by American Water Works Company (NYSE:AWK) whitethorn bolster capitalist confidence, arsenic these developments underline beardown fiscal performance. The 8% boost successful dividends aligns with the company's purpose for accordant growth, which, unneurotic with a 7% emergence successful stock terms implicit the past quarter, indicates affirmative momentum. However, with a statement terms people of US$142.70 and the existent stock terms astatine US$149.20, the banal appears modestly overvalued by 4.6% according to expert projections.

Over a five-year period, American Water Works achieved a full shareholder instrumentality of 22.23%, reflecting some superior gains and dividends, and demonstrating the company's quality to make returns. While the institution underperformed the broader US market's 11.6% summation successful the past year, AWK's net maturation of 11.7% matched that of the Water Utilities industry.

The caller net announcement could power aboriginal gross and net projections positively. The company's absorption connected infrastructure investments and favorable regulatory conditions whitethorn enactment its gross growth, with net expected to ascent to US$1.3 cardinal by 2028. Despite these prospects, the company's forecast price-to-earnings ratio remains higher than the industry's average, suggesting cautious optimism among analysts.

Unlock broad insights into our investigation of American Water Works Company banal successful this fiscal wellness report.

This nonfiction by Simply Wall St is wide successful nature. We supply commentary based connected humanities information and expert forecasts lone utilizing an unbiased methodology and our articles are not intended to beryllium fiscal advice. It does not represent a proposal to bargain oregon merchantability immoderate stock, and does not instrumentality relationship of your objectives, oregon your fiscal situation. We purpose to bring you semipermanent focused investigation driven by cardinal data. Note that our investigation whitethorn not origin successful the latest price-sensitive institution announcements oregon qualitative material. Simply Wall St has nary presumption successful immoderate stocks mentioned.