American Water Works CoAWK +0.11%78 5-Year Yield-on-Cost % is 3.86 as of Jul. 11, 2026, which is 36% above its 10-year median of 2.83. GuruFocus rates AWK with a GF Score™ of 78/100 and a GF Value™ of $155.61 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 432 Utilities - Regulated companies, American Water Works Co ranks worse than 53.94% on this metric.
The historical rank and industry rank for American Water Works Co's 5-Year Yield-on-Cost % or its related term are showing as below:
AWK'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.83 Med: 2.83 Max: 4.04
Current: 3.86
During the past 13 years, American Water Works Co's highest Yield on Cost was 4.04. The lowest was 1.83. And the median was 2.83.
AWK's 5-Year Yield-on-Cost % is ranked worse than 53.94% of 432
companies
in the Utilities - Regulated industry
Industry Median: 4.12
vs AWK: 3.86
American Water Works Co (NYSE:AWK) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
American Water Works Co 5-Year Yield-on-Cost % Related Terms
AWK vs WTRG, AWR, CWT: 5-Year Yield-on-Cost % Comparison
For the Utilities - Regulated Water subindustry, American Water Works Co's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Water Works Co 5-Year Yield-on-Cost % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, American Water Works Co's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where American Water Works Co's 5-Year Yield-on-Cost % falls into.
American Water Works Co 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
American Water Works Co (AWK) has a 5-Year Yield-on-Cost % of 3.86 as of Jul. 11, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Water Works Co and its competitors. This is 36% above median its historical median of 2.83. Over the past decade, American Water Works Co's 5-Year Yield-on-Cost % has ranged from 1.83 to 4.04. According to the industry distribution chart, American Water Works Co ranks #233 out of 432 companies in the Utilities - Regulated industry, placing it in the top 53.9%.
Is American Water Works Co's 5-Year Yield-on-Cost % too high?
American Water Works Co's current 5-Year Yield-on-Cost % of 3.86 is 36% above median its 10-year median of 2.83. Over the past 10 years, this metric has ranged from a low of 1.83 to a high of 4.04. The Utilities - Regulated industry median 5-Year Yield-on-Cost % is 4.12. American Water Works Co's value of 3.86 is 6.3% below this industry median. Based on the distribution chart, American Water Works Co ranks #233 out of 432 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, American Water Works Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American Water Works Co's 5-Year Yield-on-Cost % compare to WTRG and AWR?
According to the Utilities - Regulated industry distribution chart, American Water Works Co ranks #233 out of 432 companies for 5-Year Yield-on-Cost %. This places American Water Works Co in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.12. American Water Works Co's value of 3.86 is 6.3% below this benchmark. Historically, American Water Works Co's own 5-Year Yield-on-Cost % has ranged from 1.83 to 4.04 over the past decade. While the company's 10-year median is 2.83 vs. the industry median of 4.12, American Water Works Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Utilities - Regulated company?
The median 5-Year Yield-on-Cost % among Utilities - Regulated companies is 4.12, based on 432 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American Water Works Co's current 5-Year Yield-on-Cost % of 3.86 is 6.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on American Water Works Co and its competitors. For the Utilities - Regulated industry, the median 5-Year Yield-on-Cost % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Water Works Co's current 5-Year Yield-on-Cost % is 3.86, which is 36% above median its own 10-year median of 2.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Water Works Co stock overvalued right now?
Based on GuruFocus' analysis, American Water Works Co (AWK) is currently considered Modestly Undervalued. The stock's GF Value™ is $155.61, compared to a current price of $130.69 — trading 16% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.86, which is 36% above median its 10-year median of 2.83 and 6.3% below the Utilities - Regulated industry median of 4.12. American Water Works Co's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For American Water Works Co (AWK), the current 5-Year Yield-on-Cost % is 3.86 as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American Water Works Co (AWK) Overvalued in 2026?
Based on GuruFocus' analysis, American Water Works Co stock appears to be undervalued.
The current stock price of $130.69 is trading 16% below its estimated GF Value™ of $155.61.
GuruFocus considers American Water Works Co to be Modestly Undervalued.
Key valuation signals for AWK:
5-Year Yield-on-Cost %: 3.86 (36% above median its 10-year median of 2.83)
GF Value™: $155.61 vs. price of $130.69 (16% below fair value)
Industry Position: 6.3% below the Utilities - Regulated median (#233 of 432)
No single metric tells the full story. See the AWK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Water Works is the largest investor-owned US water and wastewater utility, serving nearly 4 million customers in 14 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns. The proposed Essential Utilities acquisition would add regulated water and wastewater utilities in Ohio, North Carolina, and Texas while increasing its presence in Illinois, Indiana, Pennsylvania, New Jersey, and Virginia.
78GF Score
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