AQWA - American Water Works: A World-Class Dividend Growth Stock To Buy
- The water utility's adjusted diluted EPS payout ratio will expand slightly from 55.5% in 2021 to a still sustainable 57.8% in 2022.
- American Water Works' operating revenue dropped in the first quarter due to a divestiture, but adjusted diluted EPS surged higher during the quarter.
- The water utility's interest coverage ratio edged higher in the first quarter.
- The dividend discount model and discounted cash flows model suggest that American Water Works' stock is trading at a 10% discount to fair value.
- American Water Works' 1.7% dividend yield, 8% annual earnings growth, and 1% annual valuation multiple expansion should translate into double-digit annual total returns over the next decade.
For further details see:
American Water Works: A World-Class Dividend Growth Stock To Buy