American Water Works

Capital is prioritized to regulated rate base growth and bolt‑on acquisitions that expand customer connections, followed by a dividend growing in line with EPS and a payout ratio targeted at 55–60 percent. The 2025–2029 capex plan of 17–18 billion emphasizes infrastructure renewal, resiliency and PFAS compliance.

Management uses equity judiciously; forward sale agreements in August 2025 provide future funding but imply around 4 percent dilution if fully settled.

M&A discipline is evident in closed municipal systems and the announced combination with Essential Utilities, which should enhance scale and funding optionality but introduces an additional regulatory approval track and integration scope, including a regulated gas LDC.

Overall, reinvestment returns are attractive within the regulated construct, and equity issuance has been aligned with growth.