Shares of Severn Trent (LSE:LON:SVT) saw a modest increase of 0.2% following the company's announcement that its dividend policy for fiscal years 2026 to 2030 is set to continue as expected.

Severn Trent has said it plans to hand shareholders a higher dividend for the next year, as trading remains in line with targets. This is despite its average customer's yearly water bill being set to increase by an average of 47% over the next five years,

Severn Trent PLC SVT shares inched up 0.49% to £24.84 Thursday, on what proved to be an all-around positive trading session for the stock market, with the FTSE 100 Index UKX rising 0.23% to 8,565.20.

The water company, which serves about eight million people across the Midlands and Wales, expects to pay a 126.02p per share dividend to shareholders in the 2025/26 financial year.