The Strength of American Water Works Company (AWK) as a Consistent Income Stock

American Water Works Company, Inc. (NYSE:AWK) is included among the 11 Best Income Stocks to Buy According to Hedge Funds.

American Water Works Company, Inc. (NYSE:AWK) is a regulated utility that provides water and wastewater services to over 14 million people in 14 states. Its regulated utility operations are the core of its business, accounting for 92 percent of operating revenue in 2024. The company focuses on delivering clean and reliable water services across its service areas.

American Water Works Company, Inc. (NYSE:AWK) maintains a strong financial profile, supported by an investment-grade credit rating, which allows it to borrow at lower interest rates and under favorable terms. The company follows a conservative dividend policy, targeting a payout ratio of 50% to 60% of its adjusted earnings. With projected earnings growth between 7% and 9% annually, American Water Works expects its dividend to grow at a similar pace. The company has increased its dividend every year since going public in 2008.

American Water Works Company, Inc. (NYSE:AWK) currently pays a quarterly dividend of $0.8275 per share and has a dividend yield of 2.36%, as recorded on July 31.

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