American Water Works Company, Inc. (NYSE:AWK) announced today that its board of directors declared a quarterly cash dividend payment of $0.7075 per share of common stock, an increase of 8.0 percent.

"American Water continues to be an industry leader in dividend growth, which is a result of our continued successful execution of key strategic initiatives and the strength of our financial outlook," said M. Susan Hardwick, president and chief executive officer of American Water. "We recognize the value of our dividend growth and the role it has played in delivering exceptional shareholder value."

The company expects to continue its dividend growth within a 7 to 9 percent range over the long term, with a target dividend payout ratio of between 55 and 60 percent of earnings. The company has paid dividends at a compound annual growth rate of nearly 9.7 percent over the last five years.

The increased quarterly dividend will be payable on June 1, 2023, to all shareholders of record as of May 9, 2023.

American Water offers a dividend reinvestment and direct stock purchase plan called American Water Stock Direct (the "Plan"), which enables shareholders to reinvest cash dividends and purchase additional shares of American Water common stock without any brokerage commissions or service charges. Shareholders and other persons may obtain a copy of the Plan prospectus and an enrollment form by contacting American Stock Transfer & Trust Company ("AST") at 888-556-0423, visiting AST's website at www.astfinancial.com, contacting American Water's Investor Relations department at 856-566-4005 or by visiting the Investor Relations webpage located at ir.amwater.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities. The offer is being made solely through the Plan prospectus.

About American Water

With a history dating back to 1886, American Water (NYSE:AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs approximately 6,500 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable, and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.

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American Water Increases Dividend 8.0 Percent