American Water Works Company, Inc.

AWK
Utilities
$131.88
2.32%Undervalued

American Water Works Company, Inc. (AWK) is a Utilities company that currently yields 2.32% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $126.31 and the overvaluation threshold at $192.71. American Water Works Company, Inc. holds a quality score of 17/100 (Risky), reflecting 12 consecutive years of dividend growth with a 59% payout ratio. The 5-year dividend CAGR stands at -18.7%.

AWK Dividend Yield History — Weiss Valuation

Underval. $126.31Overval. $192.71

Distance to undervalued

In undervalued territory

Price sits 0.0% below the Weiss buy zone ceiling

The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.

Zone ceiling

$126.31

Current yield

2.32%

Research checklist

What to clear before buying the yield

Updated Jul 9, 2026

Dividend durability

12Y

Long dividend history supports a deeper look.

Earnings payout

59%

Earnings coverage leaves room for noise.

Cash payout

N/A

Confirm cash conversion and one-off effects.

Dividend growth

-18.7%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-07-082026-07-09

Weiss signal

Fair Undervalued

Signal moved from fair to undervalued.

Price

-2.2%

$134.82 $131.88

Price fell 2.2% since the prior snapshot.

Why Now?

American Water Works Company, Inc. is trading near its historical undervaluation band.

Current yield 2.3% vs historical max 3.4% (68% of maximum).

Recent dividend history shows no sustained growth streak.

Conservative payout ratio of 59%.

What matters now

Read the signal before the headline yield

Valuation is the invitation here: the yield is elevated versus its own history.

The 17/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

AWK Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$232

Year 10 Income

$285

Yield on Cost

2.92%

Total Income

$2,578

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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AWK Dividend Quality Score

Quality Score

17/ 100

Risky

Payout Ratio12/25
Dividend Streak0/25
Growth (CAGR 5Y)0/20
Yield vs History5/15
FCF Coverage0/15

Key Metrics

Current Price$131.88
Annual Dividend$3.06
Current Yield2.32%
Yield — Max (10Y)3.41%
Yield — Min (10Y)1.64%
Undervalued Below$126.31
Overvalued Above$192.71
Payout Ratio58.69%
CAGR Dividend 5Y-18.7%
CAGR Dividend 10Y-5.4%
Years No Cut
In the buy zone

AWK is historically undervalued. Ready to add it to your portfolio?

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12
consecutive years of dividend growth