American Water: Revisiting The Merger Math
American Water is merging with Essential Utilities to form the largest public water utility in the United States, with an expected closure in the first quarter of 2027. The merger is projected to enhance earnings per share (EPS) and dividend growth, benefiting from synergies and a broader geographic presence. The pro-forma dividend yield is anticipated to increase to 3.4% by 2027.
- ▪American Water is merging with Essential Utilities to create the largest public water utility in the U.S.
- ▪The merger is expected to close in Q1 2027.
- ▪AWK anticipates long-term EPS and dividend growth of 7-9% due to synergies from the merger.
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