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American Water (AWK) Unit to Invest $8.5M in a Water Project
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American Water Works (AWK - Free Report) announced that its unit, New Jersey American Water, will invest $8.5 million in Monmouth County water infrastructure to improve water service reliability in the region. The company will replace nearly 4,900 feet of aging water mains by changing the 30-inch transmission main that was installed in the 1970s with new 30-inch ductile iron mains.
Proper maintenance and upgrade of the old infrastructure allow the company to meet rising demand from its residential and commercial customers and assist firefighters in emergencies. AWK proactively identifies and upgrades critical infrastructure based on routine assessments throughout its distribution system.
In 2023, New Jersey American Water invested $507 million in different projects to upgrade critical systems and maintain high-quality services. The company will continue to invest in 2024, as evident from its recent investment in upgrade projects.
Aging Water Industry Needs Investment
The U.S. water infrastructure is aging. A major portion of the infrastructure is nearing the end of effective service life due to delays in essential maintenance and upgrade work. Per the U.S. Environmental Protection Agency, investments of $625 billion and $271 billion are necessary to maintain and expand drinking water and wastewater pipelines, respectively. The investment will be channelized to strengthen water infrastructure, including the replacement of water mains and the upgradation of storage tanks and purifying units.
American Water is systematically investing across its service region in the United States. The company aims to invest $3.1 billion in 2024, with a major portion utilized for infrastructure improvements in regulated businesses. AWK aims to invest in the range of $16-$17 billion from 2024-2028 and $34-$38 billion in the 2024-2033 period.
Other water utilities like Essential Utilities (WTRG - Free Report) , California Water Service Group (CWT - Free Report) and Middlesex Water (MSEX - Free Report) have well-chalked-out capital investment plans to strengthen infrastructure.
Essential Utilities plans to invest $1.3-$1.4 billion in 2024 for more than 5,000 planned projects and $7.2 billion in 2024-2028 to improve water and natural gas systems to better serve its customers with the help of improved information technology.
California Water Service plans to invest more than $380 million in capital expenditures in 2024.
Middlesex Water plans to invest $237 million in 2024-2026 to strengthen the company’s water and wastewater infrastructure to service its customers in a safe, reliable and efficient manner.
The current dividend yield for WTRG, CWT and MSEX is 3.3%, 2.3% and 2.4%, respectively, which is better than the Zacks S&P 500 composite’s yield of 1.6%.
Price Performance
In the past three months, American Water has gained 10.5% compared with the industry’s 5.1% growth.
Zacks Rank
American Water currently has a Zacks Rank #4 (Sell).
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American Water (AWK) Unit to Invest $8.5M in a Water Project
American Water Works (AWK - Free Report) announced that its unit, New Jersey American Water, will invest $8.5 million in Monmouth County water infrastructure to improve water service reliability in the region. The company will replace nearly 4,900 feet of aging water mains by changing the 30-inch transmission main that was installed in the 1970s with new 30-inch ductile iron mains.
Proper maintenance and upgrade of the old infrastructure allow the company to meet rising demand from its residential and commercial customers and assist firefighters in emergencies. AWK proactively identifies and upgrades critical infrastructure based on routine assessments throughout its distribution system.
In 2023, New Jersey American Water invested $507 million in different projects to upgrade critical systems and maintain high-quality services. The company will continue to invest in 2024, as evident from its recent investment in upgrade projects.
Aging Water Industry Needs Investment
The U.S. water infrastructure is aging. A major portion of the infrastructure is nearing the end of effective service life due to delays in essential maintenance and upgrade work. Per the U.S. Environmental Protection Agency, investments of $625 billion and $271 billion are necessary to maintain and expand drinking water and wastewater pipelines, respectively. The investment will be channelized to strengthen water infrastructure, including the replacement of water mains and the upgradation of storage tanks and purifying units.
American Water is systematically investing across its service region in the United States. The company aims to invest $3.1 billion in 2024, with a major portion utilized for infrastructure improvements in regulated businesses. AWK aims to invest in the range of $16-$17 billion from 2024-2028 and $34-$38 billion in the 2024-2033 period.
Other water utilities like Essential Utilities (WTRG - Free Report) , California Water Service Group (CWT - Free Report) and Middlesex Water (MSEX - Free Report) have well-chalked-out capital investment plans to strengthen infrastructure.
Essential Utilities plans to invest $1.3-$1.4 billion in 2024 for more than 5,000 planned projects and $7.2 billion in 2024-2028 to improve water and natural gas systems to better serve its customers with the help of improved information technology.
California Water Service plans to invest more than $380 million in capital expenditures in 2024.
Middlesex Water plans to invest $237 million in 2024-2026 to strengthen the company’s water and wastewater infrastructure to service its customers in a safe, reliable and efficient manner.
The current dividend yield for WTRG, CWT and MSEX is 3.3%, 2.3% and 2.4%, respectively, which is better than the Zacks S&P 500 composite’s yield of 1.6%.
Price Performance
In the past three months, American Water has gained 10.5% compared with the industry’s 5.1% growth.
Zacks Rank
American Water currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.