American Water increases dividend 8.2% to 89.5c

American Water (AWK) Works announced that its board of directors declared a quarterly cash dividend payment of 89.5c per share of common stock, an increase of 8.2% from last quarter’s cash dividend. The company expects to continue its annual dividend growth within a 7 to 9% range over the long term, and maintaining a target dividend payout ratio of between 55 and 60% of earnings, it stated. The increased quarterly dividend will be payable on June 2 to all shareholders of record as of May 12. “Our dividend increase aligns with our long-term financial target of 7 to 9% EPS and dividend growth, demonstrating our commitment to executing successful strategic initiatives,” said John Griffith, President and CEO of American Water. “American Water continues to be an industry leader in dividend growth and we recognize the dividend’s importance in providing exceptional value to our shareholders.”