Wednesday, December 30, 2009

Water, Water Everywhere: Top Yielding Water Utility Stocks

Many years ago, I started investing in water utilities. I figured that any company that can sell something as abundant as water, must be in a pretty good business. As it turned out every water stock I invested in got taken over by another company, at a price per share much higher than what I paid for it. I still own a couple (see my disclosure below).

Water utilities may not pay a yield as high as electric utilities or gas utilities, but there are over a dozen water utility stocks with yields ranging from 1.7% to 4.7% that were turned up by Here are some examples.

American Water Works Company (AWK) is a $3.94 billion market cap water utility which yields 3.7%. The company provides water and wastewater services in 32 states and Ontario, Canada. The stock has a forward PE of 15.7.

Aqua America Inc. (WTR) has a market cap of $2.41 billion, and serves customers in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, New York, Florida, Indiana, Virginia, Maine, Missouri, and South Carolina. The stock pays a yield of 3.3% and has a forward PE of 19.7.

To see the rest of the high yielding water stocks, which you can download, add to and sort, check out

Full disclosure: Author owns CWT and CTWS.


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