Definitive Analysis | Institutional-Grade Financial Research
Definitive Analysis
Get Full Access
See Pricing Start Free Trial

American Water Works Company, Inc. (AWK)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$133.77 - $354.85$204.54
Multi-Stage$94.93 - $103.53$99.15
Blended Fair Value$151.85
Current Price$139.19
Upside9.10%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.63%10.48%3.002.732.392.191.991.811.641.481.341.23
YoY Growth--9.96%13.92%9.11%10.03%10.20%10.66%10.38%10.73%9.21%10.65%
Dividend Yield--2.03%2.27%1.63%1.33%1.33%1.51%1.58%1.80%1.72%1.78%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,112.00
(-) Cash Dividends Paid (M)621.00
(=) Cash Retained (M)491.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)222.40139.0083.40
Cash Retained (M)491.00491.00491.00
(-) Cash Required (M)-222.40-139.00-83.40
(=) Excess Retained (M)268.60352.00407.60
(/) Shares Outstanding (M)195.00195.00195.00
(=) Excess Retained per Share1.381.812.09
LTM Dividend per Share3.183.183.18
(+) Excess Retained per Share1.381.812.09
(=) Adjusted Dividend4.564.995.27
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$133.77$204.54$354.85
Upside / Downside-3.90%46.95%154.94%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,112.001,184.281,261.261,343.241,430.551,523.541,569.24
Payout Ratio55.85%62.68%69.51%76.34%83.17%90.00%92.50%
Projected Dividends (M)621.00742.26876.671,025.401,189.781,371.181,451.55

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)673.97680.36686.75
Year 2 PV (M)722.78736.55750.44
Year 3 PV (M)767.63789.67812.12
Year 4 PV (M)808.74839.84871.83
Year 5 PV (M)846.30887.18929.62
PV of Terminal Value (M)14,691.7915,401.4116,138.19
Equity Value (M)18,511.2219,335.0120,188.96
Shares Outstanding (M)195.00195.00195.00
Fair Value$94.93$99.15$103.53
Upside / Downside-31.80%-28.76%-25.62%

High-Yield Dividend Screener

« Prev Page 11 of 30 Next »
Ticker Company Dividend Yield % Dividend Per Share Payout Ratio %
THFFFirst Financial Corporation3.32%$1.9831.67%
IRDMIridium Communications Inc.3.31%$0.5949.66%
PDCOPatterson Companies, Inc.3.31%$1.0466.64%
0HRZ.LCoterra Energy Inc.3.30%$0.8840.64%
ACIAlbertsons Companies, Inc.3.30%$0.5733.33%
KDPKeurig Dr Pepper Inc.3.30%$0.9278.89%
SPBSpectrum Brands Holdings, Inc.3.30%$1.9848.25%
0IUX.LGenuine Parts Company3.29%$4.0569.77%
BGBunge Global S.A.3.29%$3.0531.37%
HDGCXThe Hartford Dividend and Growth Fund Class C3.29%$1.0820.58%
PSBDPalmer Square Capital BDC Inc.3.29%$0.4090.32%
LIENChicago Atlantic BDC, Inc.3.28%$0.3423.50%
REXRRexford Industrial Realty, Inc.3.28%$1.2890.14%
CVCYCentral Valley Community Bancorp3.27%$0.5832.80%
F-PDFord Motor Company 6.500% Notes3.27%$0.7463.45%
FSBWFS Bancorp, Inc.3.27%$1.3331.78%
TRNOTerreno Realty Corporation3.27%$1.9362.02%
0I1P.LComerica Incorporated3.26%$2.8252.30%
ALEXAlexander & Baldwin, Inc.3.26%$0.6766.95%
BRXBrixmor Property Group Inc.3.26%$0.8578.30%
AGM-PCFederal Agricultural Mortgage Corporation3.24%$7.8539.89%
HTOH2O America3.24%$1.6052.08%
WECWEC Energy Group, Inc.3.24%$3.4566.21%
XOMExxon Mobil Corporation3.24%$3.9857.54%
SCLStepan Company3.22%$1.5276.82%
HBTHBT Financial, Inc.3.21%$0.8333.20%
KALUKaiser Aluminum Corporation3.21%$3.8670.13%
SMPStandard Motor Products, Inc.3.20%$1.1838.74%
0QZA.LConocoPhillips3.19%$3.0943.65%
PAGPenske Automotive Group, Inc.3.18%$5.0435.22%
CRBGCorebridge Financial, Inc.3.17%$0.9652.57%
EDConsolidated Edison, Inc.3.17%$3.1756.36%
LARKLandmark Bancorp, Inc.3.17%$0.8238.75%
NBPU.LNB Private Equity Partners Limited3.17%$0.6770.20%
PFBCPreferred Bank3.16%$3.0329.67%
HNIHNI Corporation3.15%$1.3444.63%
RBBRBB Bancorp3.15%$0.6443.45%
FGF&G Annuities & Life, Inc.3.14%$0.9428.23%
NBHCNational Bank Holdings Corporation3.14%$1.1937.27%
0KZA.LSM Energy Company3.13%$0.609.44%
CBUCommunity Bank System, Inc.3.13%$1.8246.85%
DTEDTE Energy Company3.13%$4.0887.19%
RNSTRenasant Corporation3.13%$1.1148.14%
BSRRSierra Bancorp3.11%$1.0134.68%
FCFFirst Commonwealth Financial Corporation3.11%$0.5238.19%
PNCThe PNC Financial Services Group, Inc.3.11%$6.5739.89%
PRKPark National Corporation3.11%$4.8044.20%
GEFGreif, Inc.3.10%$2.1212.04%
0QAH.LMerck & Co., Inc.3.09%$3.2542.60%
BANRBanner Corporation3.09%$1.9335.15%