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American Water Works Company, Inc. (AWK) logo

American Water Works Company, Inc.

S&P 500
AWK|Utilities|Utilities - Regulated Water|$125.05|P/E 22.2|MCap 24.4B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

75/ 100Safe

AWK's dividend appears safe and well-supported. Strengths include a 58.7% earnings payout ratio & 46.5% fcf payout ratio. Areas of concern: 0.4x current ratio. The dividend has been growing at a 8.61% 5-year CAGR. As a utility, higher payout ratios and leverage are typical for this regulated sector.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 58.7%Low earnings payout ratio leaves room to grow the dividend.
  • Operating Margin: 33.2%Healthy operating margin provides a wide buffer.
  • Gross Margin: 59.2%High gross margin signals strong pricing power.

Risks

  • Current Ratio: 0.4xLimited short-term liquidity to meet obligations.

Payout & Coverage

Safe
Earnings Payout Ratio
58.7%Very Safe
FCF Payout Ratio
46.5%Safe
CFO Payout Ratio
31.0%Safe
Interest Coverage
3.3xCaution

Balance Sheet

Caution
Net Debt / Total Assets
44.6%Caution
Current Ratio
0.4xDanger
Debt-to-Equity
142.3Safe

Profitability

Safe
Return on Equity
10.2%Caution
Operating Margin
33.2%Very Safe
Gross Margin
59.2%Very Safe
Profit Margin Stability
StableSafe

Dividend Track Record

Very Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
8.6%Safe
Earnings Stability
GrowingVery Safe

About American Water Works Company, Inc.

American Water Works Company, Inc. is the largest investor-owned water and wastewater utility in the United States, serving nearly 4 million customers across 14 states through its regulated businesses segment. It provides essential water and wastewater services to residential, commercial, industrial, and municipal customers, operating approximately 80 surface water treatment plants, 520 groundwater treatment plants, 190 wastewater treatment plants, and over 54,500 miles of transmission, distribution, and collection mains. The company also delivers water and wastewater services on military installations under long-term contracts and manages facilities for municipal customers. Its other segment handles corporate costs and inter-segment eliminations. American Water Works Company, Inc. focuses on infrastructure improvements for water quality and reliability in regulated markets. Founded in 1886 and headquartered in Camden, New Jersey, it plays a critical role in the U.S. utilities sector by ensuring safe, reliable water services nationwide.

Dividend Overview

Dividend Yield

2.65%

Annual Dividend

$3.31

Frequency

Quarterly

Payout Ratio

58.69%

FCF Payout Ratio

46.47%

Stock Price

$125.05

52-Week Range

$121.28 $148.33

Dividend History (2016–2025)

AWK annual dividend per share and yield history

Earnings & Profitability

AWK earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

May 12, 2026

Next Payment Date

June 2, 2026

Dividend Growth

3-Year Dividend CAGR

8.16%

5-Year Dividend CAGR

8.61%

10-Year Dividend CAGR

9.34%

3-Year Total Growth

26.54%

5-Year Total Growth

51.12%

10-Year Total Growth

144.29%

Income Calculator

AWK Dividend Calculator

Total Investment

$12,505.00

Annual Income

$331.20

Quarterly Income

$82.80

Monthly Income

$27.60

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Frequently Asked Questions

What is AWK's current dividend yield?
American Water Works Company, Inc. (AWK) currently has a dividend yield of 2.65%, based on a stock price of $125.05 and an annual dividend of $3.31.
When is AWK's next dividend payment date?
AWK's next ex-dividend date is 2026-05-12 and the next payment date is 2026-06-02. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does AWK pay in dividends per year?
American Water Works Company, Inc. paid $3.25 per share in annual dividends in 2025. The dividends are paid quarterly.
Has AWK been increasing its dividend?
American Water Works Company, Inc. has grown its dividend at a 5-year CAGR of 8.61% and a 10-year CAGR of 9.34%.
Is AWK's dividend safe?
American Water Works Company, Inc. has a payout ratio of 58.69%. Its free cash flow payout ratio is 46.47%. A payout ratio below 60% is generally considered sustainable.
How is AWK's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates American Water Works Company, Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for utilities companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.