American Water Works Company, Inc. (AWK) is listed among the 11 Best Income Stocks to Buy According to Hedge Funds. It is a regulated utility providing water and wastewater services to over 14 million people in 14 states, with regulated operations accounting for 92% of revenue in 2024.

AWK maintains a strong financial profile, with an investment-grade credit rating and a conservative dividend policy targeting a payout ratio of 50%-60% of adjusted earnings. The company expects earnings growth of 7%-9% annually, with dividend growth at a similar pace. AWK has increased its dividend every year since going public in 2008.

AWK currently pays a quarterly dividend of $0.8275 per share with a dividend yield of 2.36% as of July 31. While AWK shows investment potential, some AI stocks offer greater upside potential with less downside risk. Check out our free report on the best short-term AI stock for more information.

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Read more at Yahoo Finance: The Strength of American Water Works Company (AWK) as a Consistent Income Stock