The Case for American Water Works Company (AWK) in a Value-Oriented Dividend Portfolio

American Water Works Company, Inc. (NYSE:AWK) is included among the 11 Best Value Dividend Stocks to Buy Now.

American Water Works Company, Inc. (NYSE:AWK) is a regulated utility that delivers water and wastewater services to over 14 million people in 14 states. Most of its revenue comes from its regulated utility operations, which accounted for 92% of operating revenue in 2024.

American Water Works Company, Inc. (NYSE:AWK)’s strategy centers on a few core priorities. These include working with regulators to gain approval for rate changes, investing heavily in modernizing and replacing infrastructure, and pursuing growth through selective acquisitions. Because regulatory approval directly affects customer pricing and the recovery of infrastructure costs, it plays a vital role in the company’s performance. Maintaining efficiency while meeting environmental and health standards is also key to ensuring long-term stability and growth.

American Water Works Company, Inc. (NYSE:AWK)’s dividend policy also makes it an appealing option for income investors. The company has raised its payouts consistently since 2008. Currently, it offers a quarterly dividend of $0.8275 per share and has a dividend yield of 2.43%, as of September 26.

While we acknowledge the potential of AWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.