American Water Works said on April 26, 2023 that its board of directors declared a regular quarterly dividend of $0.71 per share ($2.83 annualized). Previously, the company paid $0.66 per share.
Shares must be purchased before the ex-div date of May 8, 2023 to qualify for the dividend. Shareholders of record as of May 9, 2023 will receive the payment on June 1, 2023.
At the current share price of $148.47 / share, the stock's dividend yield is 1.91%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.68%, the lowest has been 1.31%, and the highest has been 2.32%. The standard deviation of yields is 0.23 (n=237).
The current dividend yield is 0.97 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.61. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.31%, demonstrating that it has increased its dividend over time.
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What is the Fund Sentiment?
There are 1698 funds or institutions reporting positions in American Water Works. This is an increase of 12 owner(s) or 0.71% in the last quarter. Average portfolio weight of all funds dedicated to AWK is 0.33%, an increase of 2.14%. Total shares owned by institutions increased in the last three months by 1.53% to 167,144K shares. 
The put/call ratio of AWK is 0.69, indicating a bullish outlook.
Analyst Price Forecast Suggests 10.61% Upside
As of April 24, 2023, the average one-year price target for American Water Works is 164.22. The forecasts range from a low of 135.34 to a high of $194.25. The average price target represents an increase of 10.61% from its latest reported closing price of 148.47.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Water Works is 4,128MM, an increase of 6.17%. The projected annual non-GAAP EPS is 4.83.
What are Other Shareholders Doing?
Pictet Asset Management holds 6,728K shares representing 3.46% ownership of the company. In it's prior filing, the firm reported owning 6,954K shares, representing a decrease of 3.36%. The firm increased its portfolio allocation in AWK by 10.30% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 5,526K shares representing 2.84% ownership of the company. In it's prior filing, the firm reported owning 5,416K shares, representing an increase of 1.99%. The firm increased its portfolio allocation in AWK by 10.34% over the last quarter.
Impax Asset Management Group holds 4,842K shares representing 2.49% ownership of the company. In it's prior filing, the firm reported owning 4,651K shares, representing an increase of 3.93%. The firm decreased its portfolio allocation in AWK by 99.89% over the last quarter.
Deutsche Bank Ag\ holds 4,259K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 4,324K shares, representing a decrease of 1.54%. The firm increased its portfolio allocation in AWK by 9.96% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 4,233K shares representing 2.17% ownership of the company. In it's prior filing, the firm reported owning 4,199K shares, representing an increase of 0.79%. The firm increased its portfolio allocation in AWK by 8.41% over the last quarter.
American Water Works Background Information
(This description is provided by the company.)
ith a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,800 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to 15 million people in 46 states. American Water provides safe, clean, affordable and reliable water services to our customers to make sure we keep their lives flowing.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
