Boston, MA 09/22/2014 (wallstreetpr) – Water and wastewater utility company, American Water Works Company Inc (NYSE:AWK) said that its board of directors gave its approval for a quarterly dividend of 31 cents a share. The company has been increasing its dividend rate since 2008 thus giving a solid growth rate for both the three-year, as well as, five-year period.
Dividend Payment
The company said that the dividend would be paid to all the shareholders, whose name appear on the record books of the company as on November 10, its statement indicated. The dividend rate would work out to $1.24 a share on an annualized basis. The company has fixed December 1 for paying a dividend to all the eligible shareholders.
American Water Works Company Inc (NYSE:AWK) said that it also provided a direct stock purchase and dividend reinvestment plan known as American Water Stock Direct allowing the shareholders to reinvest the cash dividends and acquire additional shares without paying any service charges or brokerage commissions.
The latest dividend provided yield of 2.50% while the five-year average dividend yield was slightly above at 3.00%. The projected ten-year average dividend works out to 7.53%, which was significantly higher than the five-year average period.
While the latest dividend payout ratio accounted for 55.00%, the average five-year period’s dividend payout ratio was higher at 58.00%.
Growth And History
The consistent increase in the dividend rate over the years has lifted the five-year average dividend growth rate to 8.60% while the three-year average dividend growth pace was slightly higher at 11.13%.
In 2008, American Water Works Company Inc (NYSE:AWK) paid a dividend of 20 cents a share, according to Nasdaq data. This was increased to 21 cents a share in August 2009 and to 22 cents a share in August next year. In the following year, it lifted it by one cent to 23 cents a share. However, in 2012, the company has boosted the dividend by two cents a share to 25 cents and 28 cents a share in the next year. Currently, it has paid 31 cents a share, an increase of three cents from its previous payout. In the last few years, the increase has been significant making it an attractive one.
