Sunday, May 20, 2012
The Waterfall of Water Stocks
Based on the free list of water utility stocks at WallStreetNewsNetwork.com, there are ten stocks, all with yields of 3% or more. An example is American Water (AWK), which is a New Jersey based company that provides drinking water and wastewater services to 30 states and 2 Canadian provinces. The stock trades at 15.7 times forward earnings and generates a yield of 3%. Earnings for the latest quarter were up an unbelievable 59.2% on a 3.7% increase in revenues.
Middlesex Water Co. (MSEX) is another water utility that has been around for over a century, as it was founded in 1897. The company primarily serves New Jersey, Delaware, and Pennsylvania. The stock has a forward price to earnings ratio of 17.8, which is a bit on the high side, however, it pays a generous yield of 4.1%. Earnings were down over 31% for the latest quarter, on a revenue drop of 1.9%.
SJW Corp. (SJW) based in San Jose, California, provides water to the area around Silicon Valley. Investors receive a yield of 3.1% and the stock carries a forward price to earnings ratio of 17.5. The high tech area serves the company well, as quarterly earnings were up an outrageous 81.8% on a 17.1% revenue increase. WallStreetNewsNetwork.com just updated its free list of dividend paying water utility stocks, which shows the price to earnings ratio, and the yield.
Disclosure: Author didn't own any of the above at the time the article was written.