AWK - American Water Works: A Dividend Compounder To Buy Now
2024-05-04 08:00:00 ET
Summary
- In my portfolio, I prefer dividend growth stocks with dividend growth that I can easily predict.
- American Water Works' most recent dividend hike was in line with my estimate.
- The water utility has a viable path to keep delivering high-single-digit annual diluted EPS growth.
- For its industry, AWK's financial health is robust.
- Shares of the water utility could be trading at a 12% discount to fair value.
In investing, it's important to enjoy the journey and to remember the "why" behind it. This is because the phase when investors focus on building wealth (e.g., accumulation) can take a handful of years, even decades to move past.
My reason behind investing is the same as it is for most people. I would like to reach a point where I no longer have to worry about money. Upon reaching financial independence, I still plan on keeping up with my portfolio holdings and sharing my investment research....
American Water Works: A Dividend Compounder To Buy Now