6. American Water Works Company Inc. (NYSE:AWK)
Number of Hedge Fund Holders: 41
American Water Works Company Inc. (NYSE:AWK) is the largest publicly traded water and wastewater utility in the United States, delivering essential water services to residential, commercial and industrial customers across multiple states. The company owns and operates a vast network of water treatment plants, pipelines, and distribution systems, ensuring reliable access to clean water. AWK primarily serves regulated utility markets but also provides water-related services to military installations and municipalities through its non-regulated business segment. It plays a critical role in modernizing aging water systems and addressing emerging challenges like water scarcity and quality.
American Water Works Company Inc. (NYSE:AWK) delivered 2024 earnings of $5.39 per share, representing 8% YoY growth, as it successfully executed its plan in 2024, investing more than $3 billion in infrastructure. The company met its acquisition target by adding nearly 70,000 customer connections and has over 24,000 customer connections under agreement as of early 2025. For 2025, the company affirmed its earnings guidance of $5.65 to $5.75 per share, representing an 8% YoY growth compared to weather-normalized 2024 EPS.
American Water Works Company Inc. (NYSE:AWK) maintains its long-term targets of 7% to 9% EPS and dividend growth, driven by 8% to 9% rate base growth. AWK’s geographic footprint and regulatory diversity, combined with its capital plan focused on basic infrastructure renewal, drives the low-risk nature of its growth plans. Management believes that the company’s commitment to solving customer problems, particularly addressing aging infrastructure and water quality challenges, positions it for consistently strong earnings and dividend growth for many years ahead.
