Company: AWK
Filing Date: 2025-02-27
Form Type: S-3ASR
Source: 0001410636-25-000050
Chunk: 17

Company: American Water Works Company, Inc.
Filing Date: 2025-02-27
Form: S-3ASR
Chunk 17
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 brokerage commissions, related service charges, and any applicable taxes

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incurred on all sales of shares of American Water common stock made in the open market. These costs will be included as adjustments to sales and purchase prices.

### IMPORTANT CONSIDERATIONS
American Water is not recommending that you buy or sell American Water common stock, and American Water is not providing any other investment advice to you. You should participate in the Plan only after you have independently researched your investment decision. The value of American Water common stock purchased pursuant to the Plan may go up or down from time to time. No government agency, nor anyone else, insures Plan accounts or the value thereof.

American Water’s Board of Directors authorizes the payment of dividends. Our ability to pay dividends on American Water common stock is subject to having access to sufficient sources of liquidity, net income and cash flows of American Water’s subsidiaries, the receipt of dividends and direct and indirect distributions from, and repayments of indebtedness of, American Water’s subsidiaries, compliance with Delaware corporate and other laws, compliance with the contractual provisions of debt and other agreements and other factors.

The dividend rate on American Water’s common stock is determined by the Board of Directors on a quarterly basis and takes into consideration, among other factors, current and possible future developments that may affect American Water’s income and cash flows. When dividends on American Water common stock are declared, they are typically paid in March, June, September and December, although there is no guarantee this will continue to be the case. Historically, dividends have been paid quarterly to holders of record less than 30 days prior to the distribution date. Since the dividends on American Water’s common stock are not cumulative, only declared dividends are paid.

The Plan does not have any effect on American Water’s dividend policy. American Water makes no representation as to the declaration of future dividends or the rate at which dividends may be paid, since they necessarily depend upon our future earnings, financial requirements and other factors. American Water, on a stand-alone basis, generates no operating income of its own. Accordingly, our ability to pay dividends to our shareholders depends on dividends received from our subsidiaries and other factors. Under applicable law, American Water’s subsidiaries may pay dividends on their capital stock or other equity only from retained, undistributed or current earnings. A significant loss recorded at a subsidiary may limit the amount of the dividend that the subsidiary can pay. The ability of American Water’s subsidiaries to pay upstream dividends, make other upstream distributions or repay indebted