Thursday, October 04, 2012

Would You Pay to Buy Tap Water on the Streets of New York?

Here's an innovative start-up business idea. Sell tap water on the streets of New York City. Of course the company providing this innovative product, the Molecule Project, dispenses the water through a very high quality filtering machine. Will this company give the water utilities a run for their money? Probably not, as these utilities have been doing very well, with many increasing their dividends over the last few months.

According to the free list of high yield water utility stocks at, American States Water (AWR), which was founded in 1929, distributes water in 75 communities in California. It trades at 17.7 times forward earnings and pays a decent yield of 3.2%. In August, the company boosted its dividends by an incredible 26.7%. Earnings for the latest quarter were down 5.5%, but revenues were up 4.1%.

Aqua America (WTR) distributes water to customers in Pennsylvania, Texas, North Carolina, Ohio, Illinois, New Jersey, New York, Florida, Indiana, Virginia, Maine, and Georgia. The stock has a forward price to earnings ratio of 20.9, and yields 2.7%. The company has raised its dividends every year since 1988 and has numerous stock splits during that time. Earnings for the latest quarter were up over 10% on an 11% increase in revenues.

Connecticut Water Service (CTWS) trades at 24 times earnings and yields 3.1%. Earnings were up a substantial 20% on a significant 23% boost in revenues. The company, which was founded in 1956, serves customers in 55 towns in Connecticut. The company recently raised its dividend by 2% in August.

For a free list of high yield water utility stocks, go to

Disclosure: Author didn't own any of the above at the time the article was written.


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