MaxDividends Ideas: Could This Utility Stock Add Stability to Your Portfolio?
8.91% Dividend Growth and 17 Years of Increases
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MaxDividends Ideas: 8.91% Dividend Growth and 17 Years of Increases
Could This Utility Stock Add Stability to Your Portfolio?
Picture this: a company that’s been growing its dividends for the last 17 years and still has plenty of room for more.
If you’re looking for steady growth and long-term income, this water utility might just quench your thirst for dividends. Want to know more?
Meet American Water Works (NYSE: AWK)
American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers.
Financial Score: 83 / 99
American Water Works may not be the most glamorous name out there, but if you’re serious about reliable, long-term income, this company should be on your radar.
Providing water and wastewater services across 16 states, it’s the largest and most geographically diverse utility in the U.S. And as of October 2024, they’re paying an annual dividend of $3.06 per share, yielding 2.17%.
17 Consecutive Years of Dividend Increases
Here’s where things get really exciting. American Water Works has increased its dividend for 17 consecutive years. That’s the kind of consistency dividend investors crave.
This reliable growth track record puts them in the elite group of Dividend Contenders. You might not get a flashy yield, but for those in it for the long haul, this is where stability meets growth.
Impressive 8.91% Annual Dividend Growth
Even better, American Water Works has grown its dividend by an average of 8.91% annually over the past three years. That’s a seriously attractive growth rate, especially in the stable utility sector, where high growth rates are hard to come by.
If you’re looking for a company that will grow your income over time, this number should catch your eye.
A Payout Ratio That Leaves Room for Growth
Let’s talk about sustainability. With a dividend payout ratio of 62.07%, American Water Works is comfortably paying out dividends without overextending itself.
A payout ratio below 75% is generally considered safe for utilities, which means there’s still room for growth, giving you peace of mind that your income stream isn’t under threat.
American Water Works - Quick MaxDividends Team Overview
🟢 Statement: Analysis of recent reports shows that the company is currently profitable
🟢 Sales: The company is successfully increasing sales, maintaining positive dynamics
🟢 Profitability: The dynamics of operating profit growth over recent years underscores the company’s successful steps to expand and strengthen its position in the markets
🟢 Earnings: Earnings per share are growing, the dynamics have been positive for several years. This means the company knows how to manage business profitability and maintain it for many years
🟢 Overall: The company's business appears to be coping well with challenges, demonstrating consistent profitability over the years.
Important Notice
If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.
MaxDividends Top Stocks pay sustainable dividends by decades without interruption, rasing them consistently over years.
Here is a quick dive into American Water Works financials over last years
To keep your portfolio in good shape, make sure you're regularly checking the financials of the companies you're invested in. Stronger companies deliver better results, so it’s important to track their quarterly and annual reports.
Top-tier companies usually have a Financial Score of 80+, with the best hitting 90+. If you notice that score dropping below 80, it might be time to rethink your position before things go south.
👉 Learn more about Financial Score
This is just the free version of MaxDividends. In the Premium version, our members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis.
Companies with 90+ Financial Score already there and Standex International Corp is tracked too on that list. Don’t forget to check Financial Score periodically. Or switch on notifications about changes.
Interesting Fact
Over 140 Years of Delivering Water
Here’s something cool: American Water Works has been around since 1886. That’s over 140 years of delivering water and wastewater services.
Not many companies can boast a history that long, which speaks to the enduring demand and resilience of the business.
From humble beginnings, they’ve grown to serve 15 million people across the U.S. through 3.4 million customer connections.
Top 3 Competitors
IDA Corp Inc
MGE Energy Inc
Ameren Corp
Every week on Mondays, our team handpick top 10 high yield dividend growing reliable undervalued stocks to invest in. All the MaxDividends Top companies you can find in the MaxDividends List.
Conclusion
Is American Water Works the Right Fit for Your Portfolio?
With 17 years of consecutive dividend increases, an 8.91% annual growth rate, and a safe 62.07% payout ratio, American Water Works is looking like a solid bet for long-term investors.
Sure, the yield might not jump off the page at 2.17%, but for consistent, reliable growth, this stock delivers the goods. If you’re looking to add stability to your portfolio while still enjoying growing dividends, American Water Works could be your next winner.
With a Financial Score of 83 / 99, it’s clear that American Water Works offers both stability and potential for future growth. Time to dive in!
Premium version of MaxDividends will get you access to up-to-date Financial Score Scanner with 19,000 companies worldwide.
👉 Learn more about Financial Score
Buy American Water Works Now?
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My name is Max, nice to meet you! I am an entrepreneur, dad to three, and a private investor in stocks. Pick up high-yield dividend growth stocks to live off dividends and retire early.
The idea of growing passive income typically dawns on us when we realize we’re no longer in our twenties. For me, this realization hit around age 35. I don’t plan to run a business my entire life—I have big plans for other areas of my life too. I enjoy writing, blogging, and sharing my experiences. Retire early before 50 is the main mission for me now.
Ten years ago, I started investing in growth stocks. By now, the capital from those investments and my past savings have allowed me to start implementing my planned strategy. In the early years, I focused primarily on growth stocks, but over the past few years and especially in recent months, I’ve shifted more towards high-yield, dividend growing stocks.
At this stage in my life, predictable growing passive income is more important than the long-term price appreciation of stocks, because I plan to live off the dividends.
🙏 To focus on what we love, we need stop worrying about daily expenses. For me, the solution was creating a growing passive income stream through dividend stocks.
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Help & support everyone on the way to build growing passive income, retire early and live off dividends.
Build and grow your own dividend machine with MaxDividends to boost passive income, retire early and live off dividends with community of like-minded
This is a free version of MaxDividends. Get Premium to unlock all the features and tools of MaxDividends!
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+ Bonus - access to full list of MaxDividends stocks updated weekly. Boost your passive income for living off dividends.
Unlock Top-notch dividend growth investment ideas and insights, handpicked to help you crush your financial goals, retire early and live off dividends.
NEW! List of the Most Dangerous Dividend Stocks You Should Avoid to Invest In Right Now
Stay away from dividend-trap companies with the most accurate list of dangerous stocks updated weekly
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Grab ready-made MaxDividends stock sets starting at $300, $500, or $1000 each week.
Posts & Podcasts with deep dives into the top dividend stocks we hold. Key points, current statement, perspectives and consensus.
My personal MaxDividends portfolios and short list with all the changes and updates weekly.
Comprehensive tools to help you on the way retire early and live off dividends.
Community Like-Minded Access
Stay in touch with me and other MaxDividends followers. MaxDividends community chat of like-minded who wants to live off dividends and retire early. Discuss ideas, share insights, build plans and set goals. Support, motivation, like-minded - all in!
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