American Water Works (AWK) will raise its quarterly dividend to $0.415 per share. The increased dividend will be payable on June 1, 2017 to all shareholders of record as of May 5, 2017. The company has increased its dividend every year since its IPO in April 2008.

The increased payment is consistent with American Water’s dividend practice, which is to link dividend increases to earnings per share growth and target a payout ratio between 50 to 60 percent of net income.

“American Water continues our commitment to pay dividends that are aligned with our financial performance, and to strike the right balance between increased dividend payouts to shareholders and continued proactive investment in our systems on behalf of our customers to ensure clean, safe, reliable and affordable water services,” said Susan Story, president and CEO of American Water.

American Water Works Company, Inc. is a water and wastewater utility company.  The company conducts the majority of its business through regulated utilities that provide water and wastewater service. American Water also operates market-based businesses that provide complementary services. The company’s utilities provide water and wastewater services to residential, commercial, industrial, public authority, fire service and sale for resale customers. American Water has increased its dividend every year since its IPO in April 2008. The history of American Water Works Company dates back to 1886.