5 Best Utility Dividend Stocks To Buy

In this article, we discuss 5 best utility dividend stocks to buy. If you want to read our detailed analysis of the utility sector and its outlook, go directly to read 12 Best Utility Dividend Stocks To Buy. 

5. American Water Works Company, Inc. (NYSE:AWK)

Number of Hedge Fund Holders: 36

American Water Works Company, Inc. (NYSE:AWK) is an American public utility company that provides water and wastewater services across the country. In April, BofA raised its price target on the stock to $140 with an Outperform rating on the shares, following the company’s recent quarterly earnings.

On April 26, American Water Works Company, Inc. (NYSE:AWK) declared a quarterly dividend of $0.7075 per share, having raised it by 8%. This marked the company’s 15th consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 1.90%, as recorded on June 20.

At the end of Q1 2023, 36 hedge funds in Insider Monkey’s database reported having stakes in American Water Works Company, Inc. (NYSE:AWK), growing from 31 in the previous quarter. These stakes have a total value of over $1.5 billion.

ClearBridge Investments made the following comment on American Water Works Company, Inc. (NYSE:AWK) in its Q4 2022 investor letter:

“Turning to the U.S. and Canada, U.S. electric utility PG&E and U.S. water company American Water Works Company, Inc. (NYSE:AWK) also made strong contributions. AWK provides water and wastewater utility services to customers across several states within the U.S. Shares did well after AWK announced the acquisition of a municipal facility, providing additional opportunities for growth.”