How American Water Grows Earnings
AMERICAN WATER In Summary - AWK Creates ongoing Shareholder Value
Dividend Growth
(b)
(c)
10.1% 5-year CAGR
$1.62
$1.78
$1.96
$1.21
$1.33
$1.47
Target
dividend growth CAGR at
High End
(d)
of 7-10% with a
Payout Target of
50-60%
2014
2015
2016
2017
2018
2019 E-
AWK Shareholder Value
Adjusted Consolidated Return on Equity
9.8%
LTM
June 30, 2018
(a)
Regulated Wt Avg
10.2%
authorized ROE is 9.8%
LTM
June 30, 2019
2023
Total Shareholder Return
(Price + Dividend) as of 6/30/2019
One Year
Three
Year
Five Year
American Water
38.6%
45.8%
161.2%
UTY Index
19.5%
27.9%
62.8%
S&P 500
10.3%
48.9%
66.3%
(a) Adjusted return on equity (includes both Regulated and Market-based Businesses) is a non-GAAP measure. Please see reconciliation table in appendix.
(b) Future dividends are subject to approval of the American Water Board of Directors. (c) Anchored off of 2014 dividends paid.
(d) Anchored off of 2017 Adjusted EPS (a non-GAAP measure).
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