American Water Works: A Fantastic Dividend Grower Worth Watching Now (Rating Downgrade)

American Water Works Company is on its way to becoming a dividend aristocrat next decade. The regulated utility remains positioned to deliver high single-digit percentage annual adjusted EPS growth over the next several years. AWK ended Q2 with $1.4 billion in available liquidity and a debt-to-capital ratio still under its long-term target. Shares are trading around my updated fair value estimate. Currently, AWK is set up for high single-digit percentage annual total returns over the medium term.

Few asset classes offer the steady, predictable dividend compounding found in top-tier regulated utilities. With an elite dividend growth streak record placing it firmly on the path to Dividend Aristocrat status next decade, this industrial bellwether combines reliable