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American Water (AWK) Unit to Invest $2.1M in Two Projects
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American Water Works (AWK - Free Report) announced that its unit, New Jersey American Water, will invest $2.1 million in two different projects to strengthen water infrastructure in its service region. The company keeps on upgrading old infrastructure and adding new assets to provide reliable services to its customers.
In May 2024, New Jersey American Water decided to invest $8.4 million in three different projects to strengthen water and wastewater infrastructure in its service region.
New Jersey American Water keeps on making the necessary investments to upgrade and maintain its assets. In 2023, the company invested $507 million in different projects to upgrade critical systems and maintain high-quality services. It will continue to invest in 2024, as evidenced by its recent investment in upgrade projects.
Details of the Projects
New Jersey American Water will invest $1.5 million to replace nearly 4,400 feet of aging water main in Pleasantville. In another project, the company will invest $0.6 million to replace around 3,000 feet of aging water main in Cherry Hill. These essential upgrades will continue to advance water service reliability and increase water flows for household consumption and fire protection in this community.
Investment Required in Water Space
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, to meet demand in the next 20 years. Water infrastructure, including water mains, storage tanks and purifying units, needs maintenance at proper intervals.
American Water 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 its water and wastewater infrastructure to service the company’s customers in a safe, reliable and efficient manner.
The current dividend yield for WTRG, CWT and MSEX is 3.1%, 2.2% and 2.1%, respectively, which is better than the Zacks S&P 500 composite’s yield of 1.59%.
Price Performance
In the past six months, American Water has gained 13.1% compared with the industry’s 9.9% growth.
Image: Shutterstock
American Water (AWK) Unit to Invest $2.1M in Two Projects
American Water Works (AWK - Free Report) announced that its unit, New Jersey American Water, will invest $2.1 million in two different projects to strengthen water infrastructure in its service region. The company keeps on upgrading old infrastructure and adding new assets to provide reliable services to its customers.
In May 2024, New Jersey American Water decided to invest $8.4 million in three different projects to strengthen water and wastewater infrastructure in its service region.
New Jersey American Water keeps on making the necessary investments to upgrade and maintain its assets. In 2023, the company invested $507 million in different projects to upgrade critical systems and maintain high-quality services. It will continue to invest in 2024, as evidenced by its recent investment in upgrade projects.
Details of the Projects
New Jersey American Water will invest $1.5 million to replace nearly 4,400 feet of aging water main in Pleasantville. In another project, the company will invest $0.6 million to replace around 3,000 feet of aging water main in Cherry Hill. These essential upgrades will continue to advance water service reliability and increase water flows for household consumption and fire protection in this community.
Investment Required in Water Space
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, to meet demand in the next 20 years. Water infrastructure, including water mains, storage tanks and purifying units, needs maintenance at proper intervals.
American Water 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 its water and wastewater infrastructure to service the company’s customers in a safe, reliable and efficient manner.
The current dividend yield for WTRG, CWT and MSEX is 3.1%, 2.2% and 2.1%, respectively, which is better than the Zacks S&P 500 composite’s yield of 1.59%.
Price Performance
In the past six months, American Water has gained 13.1% compared with the industry’s 9.9% growth.
Image Source: Zacks Investment Research
Zacks Rank
American Water currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.