All the water in rivers, lakes, and ponds around the world make up only 0.6% of the earth's total water. Glaciers and polar ice caps account for 2.4%, and the rest, about 97%, is in the oceans.
Water stocks provide excellent income diversification along with a portfolio of electric utilities and natural gas utilities. Water utilities provide CD beating yields yields ranging from 2% to 5%. There are about a dozen water utility stocks with dividends that were turned up by WallStreetNewsNetwork.com on their water stock list that was just updated. Here are a few examples.
SJW Corp. (SJW) is a San Jose, California based water distributor which serves the Silicon Valley area and has customers in Cupertino, San Jose, Campbell, Monte Sereno, Saratoga, Los Gatos, and parts of Santa Clara County. The stock has a forward PE of 25 and pays a yield of 2.8%. The company recently reported a 35% increase in quarterly earnings per share year over year. Robert W. Baird also initiated coverage on this company, giving it a Neutral rating.
American Water Works Co., Inc. (AWK) is a New Jersey based distributor of water in 35 states and two Canadian provinces. The stock trades at 15 times forward earnings, with a nice 3.5% yield. Earnings for the quarter ending September 30 were up over 70% from the previous quarter on a 17% increase in revenues. Robert W. Baird recently initiated coverage on the company, giving it an Outperform rating.
Consolidated Water Co. Ltd. (CWCO), based in the Cayman Islands distributes water in the Cayman Islands, the Bahamas, Belize, the British Virgin Islands, and Bermuda. It also operates desalinization plants. The stock trades at a forward PE of 16 and yields 2.9%. Quarterly income per share increased 80% year over year, however, consolidated gross profit decreased 25%. Brean Murray recently upgraded the ratings on its company from a Hold to a Buy.
To see a free list of all the top yielding water stocks, most of which yield between 3% to 5%, which you can download, add to, update, and sort, check out WallStreetNewsNetwork.com.
Author does not own any of the above.