Sunday, May 11, 2014

Some Californians May See Their Water Bills Triple: High Yield Water Utility Stocks

Because of the shortage of water in the state of California, almost two dozen water utilities in the state have implemented strict water rates, which may cause consumers to incur a water bill that could be two or three times normal. The use of water “budgeting” continues to increase by water utilities, where tiers are set based on the number of people in the family and other factors. There are a few publicly traded water utilities in California and several others throughout the United States, based on the list of high yield water utility stocks at

One example is American States Water (AWR), founded in 1929, which is a distributor of water in 75 communities in California. It trades at 19 times both trailing and forward earnings and pays a CD beating yield of 2.8%.

Aqua America (WTR), which 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 trailing price to earnings ratio of 20.2, a forward price to earnings ratio of 19.6, and yields 2.4%. The company has boosted  its dividend every year since 1988 and has had several stock splits during the last several years. 

Connecticut Water Service (CTWS) trades at 19 times current earnings and 18 times forward earnings. The company provides a yield of 3.1%. The company, which was founded in 1956, serves customers in over 50 towns in Connecticut.

For a free list of high yield water utility stocks, which can be downloaded, sorted, and added to, go to

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

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