Wednesday, May 26, 2010

Most of Canada's Bottled Water has Bacteria: Time to Buy Water Utilities

According to C-CREST Laboratories, 70 percent of bottled water in Canada were found to have excessive amounts of bacteria, above the recommended norms specified by US Pharmacopeia. No word yet on US water, but maybe it is time to start drinking tap water.

Yes, water companies have issues, such as maintaining supply and dealing with regulatory agencies. Buyt they also have plenty of advantages, es[ecially dividends.

Water utilities provide favorable yields between 2% and 5%. Maybe they aren't as high as electric utilities or gas utilities, but there are about a dozen water utility stocks with dividends that were turned up by Here are a couple examples.

American States Water Company (AWR) is a $600 million market cap utility which produces, purchases and distributes water in both California and Arizona. The company pays a yield of 3.1% and have a forward PE of 15.5.

SJW Corp. (SJW) is a San Jose, California water utility with a market cap of over $400 million. It yields 2.8% and has a forward PE of 21%

The York Water Company (YORW), based in Pennsylvania, pays a yield of 3.9% and has a forward PE of 18.2.

To see a list of the rest of the top yielding water stocks, including four that yield more than 4%, which you can download, add to, change, and sort, check out

Author does not own any of the above.


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