It boasts of 2.70059% dividend yield and a 23.37% payout ratio. By March 1, 2020, it will pay out an annual dividend yield of $0.94 per share, totaling 66.67% of its earnings. For the last five years, the stock is up 112%. “They are stewards of a natural resource,” Doerr says. Formerly known as SJW Corp, SJW Group stock has a very profitable outlook. You must commit to due diligence. Smith, which like Pentair is a member … Financial reports will also give an insight into the current standing of a company to guide your investment decision. In the past five years, it has been up to 150%. Required fields are marked *. The American Society of Civil Engineers gave the entire pipeline system a D+ grade in its latest comprehensive report card. Total Value of HF Holdings: $797 Million. If you’re contemplating ways to leverage the economic potentials of this ever-rising industry, here are the 10 best water stocks in 2020. Tipped as one of the best-performing stocks, AWK stock has been up 134% over the past five years. However, in most cases, the market reactions sparked by the reports only have short-term effects. The exchange-traded fund was founded in 2007, and its top holdings include Danaher Corp. (DHR), Agilent Technologies (A), IDEXX Laboratories (IDXX) and Ecolab (ECL). And that's just from the water that gets to us and isn't used … Pentair reported first-quarter sales of $710 million, which rose by 3% year over year. The company has a U.S. office in Minneapolis and provides energy-efficient water treatment, filtration products, pumps and water systems for residential use worldwide. It has many holdings under its management, which include Essential Utilities, Inc., Aqua America Inc., and Agilent Technologies Inc. The Zacks Consensus Estimate for Primo Water’s 2020 and 2021 earnings has moved up 20.9% and 17.3%, respectively in the past 60 days. All rights reserved. Intelligent Investing . This makes it a good option for a long-term plan. Water utilities currently trade at 26.7 times the average projected 2021 price-earnings multiple, compared with 18.2, 18.9 and 20.4 for electric, multiutility and natural gas utilities, respectively, across S&P Global Market Intelligence’s 56-company utility universe, Doerr says. The company's free cash flow increased by 8% to $2.7 billion for 2020. Enterprise Products Partners, a diversified energy infrastructure operator, reported net income of $3.8 billion for 2020, compared with $4.6 billion for 2019. Xylem is a smart water infrastructure player expected to benefit from the accelerated adoption of technology in the water sector, says Scott Ellspermann, director of exchange-traded products at Tortoise, a Leawood, Kansas-based investment company. Pros to Buying Water Stock. The company’s valuation looks the least expensive from a free cash flow yield perspective and is trading near the low end of the peer group from a P/E perspective, Underhill says. It has consistently kept its stock up 112% for more than five years and currently has a 53.46% payout ratio. Please see Section 9 of the Terms of Use. NES. Currently, the company has assets worth $578 under its management. Essential Utilities is a Pennsylvania-based water and wastewater utility company, formerly called Aqua America. A.O. The Artesian Resources market cap is valued at $348 million and predicted to have a 205% 10-year return. Although they appear unnoticed amidst headlining companies right now like in the COVID-19 vaccine space, many smart investors are making money with penny stocks and water stocks. Nuverra Environmental Solutions, Inc. engages in the development and ongoing production of … Globally, the annual consumption of fresh water is around 4 trillion cubic meters, which makes water utility services a lucrative industry for investors. The company changed its name after it acquired Peoples, a natural gas distribution utility, and 30% of its rate base is now from natural gas. In your research, you should pay attention to the regulatory environment and financial reports. Water stocks from all countries are taken into account once the respective company is listed on a stock exchange. In 2019, this stock was up 35%, showing a 4% hike from its 2018 performance. This stock remains highly favored by shareholders because of its consistency for over a decade now. YORW provides utility services that include water and drainage services to almost 50 municipalities in Pennsylvania. If you continue to use this site we will assume that you are happy with it. 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YORW presently boasts of 1.63% annual dividend yield and is projected to be 4.9% in the next five years, according to a Wall Street report. Presently, an average American uses 80 to 100 gallons of water per day. Disclosure: We at Personal Income are not financial or investment advisors and the information on this site does not constitute financial advice. 3 Stocks to Buy We have, therefore, rounded up three stocks from the Zacks Utility - Water Supply industry, all carrying a Zacks Rank # 2 (Buy). It presently serves 15 million people. FIW provides a somewhat unique service, tracking a modified market capitalization-weighted index known as ISE Clean Edge Water Index. EPD provides a dividend yield of 8.35%. Not only did I reveal five of the best tech stocks to buy right now but I detailed how I’m picking stocks for the series. The company builds, designs, finances and operates water production systems for its clients in Cayman Island. Water stocks are poised to be one of the fastest growing investment sectors in 2020 – and with good reason. Markets: DJIA + 295.83 0.87% The company serves around 2 million people in 100 communities in California, Hawaii, and New Mexico. Middlesex Water or MSEX stock has been experiencing a positive uptrend in the past one year. “The utility end market exposure is expected to be relatively resilient in the near term, providing cash flow stability relative to other water players,” Ellspermann says. Global Water Resources (GWRS): +86%; American Water Works (AWK): +68%; First Trust Water ETF (FIW): +57%; Invesco Water Resources ETF (PHO): +54%; PowerShares Global Water Portfolio ETF (PIO): +43%; Not all water stocks and ETFs have outperformed, of course. According to the United Nations 2018 World Water Development Report, by 2050, almost 6 billion people are likely to reside in places that suffer water shortage for at least one month a year. You will, therefore, need to balance your judgment between the short-term market response and the stock’s historical behavior and fundamentals. For instance, any changes in the existing regulations in the industry can significantly impact the market, either positively or the other way round. Water stocks in 2021 as profitable long term investments. Water stocks tick all the boxes in the investors’ checklist as it can conveniently be harnessed for both long-term and short-term financial plans. 7. Currently, the company's market cap is $1.1 billion, and it also yielded a 1.6% dividend in 2019. Currently, its quote is equal to $60.485 and expected to reach $98.732 in the next five years. Joshua Warner | Writer, London | Last updated: 2020-12-21T07:01:08+0000. Those who need to buy extra water in a dry year, when prices are naturally higher, can now bet on futures contracts to offset the higher prices they might have to pay in the water … When shopping for the right stock, the very first step is to research and choose the company whose mode of operations best suits your needs, budget, and preference. Your email address will not be published. The 7 Best Water Stocks to Buy Right Now At the 88th Academy Awards this past February, The Big Short was nominated for 5 awards and won one ( Best Writing, Adapted Screenplay ). Its future price was predicted to have risen to $100.920 after a year – meaning 25.779% growth. First Trust Water ETF holds 36 stocks and is based on the ISE Clean Edge Water Index, a modified market capitalization-weighted index comprised of companies that derive a substantial portion of revenue from the potable and wastewater industry. According to Gov Capital Investor Blog, as of February 29, the price was $60.140%. The water ETFs with the best 1-year trailing total returns are FIW, PHO, and CGW. Only a very few NYSE listed companies come close to AWK in terms of performance and rewards to shareholders. By 2027, private spending in the U.S. municipal water infrastructure is expected to reach 11%, and private spending on drinking water infrastructure forecasted to be $60 billion. The over 90-years old company was established in 1929 and operates in different utility services that include water services and electricity distribution. The company ended the year 2019 with an encouraging gain of 29%. All these realities put the water utility industry in a firm position in the stock market. By 2025, almost 2 billion people will live in areas plagued by water … Opinions expressed by Forbes Contributors are their own. 5 Stocks Set to Double . Its 2019 return rate was 46.4% and also predicted to have a 309% 10-year return. Its 2019 annual return was 31.8% and estimated to have a 545% 10-year return. The current dividend yields of the Dow Jones U.S. Water Index, S&P Global Water Index, NASDAQ OMX Global Water Index and S-Network Global Water Indexes are 1.73%, 2.41%, 1.83% and 2.33%, respectively. Water utilities trade at a premium compared with other utilities such as electricity and natural gas “thanks to their steady and accelerating capital expenditure programs, favorable dividend policies and the potential for takeovers by larger utilities,” says Heike Doerr, principal analyst at S&P Global Market Intelligence who covers water stocks. Evoqua Water Technologies reported strong second-quarter results and has a positive outlook for the remainder of the year, says Michael Underhill, chief investment officer of Capital Innovations. Its mode of operation and wide service coverage makes it one of the most reputable companies with solid standing. The profile of each water stock … The global water and wastewater market are expected to reach around $704 billion by 2027, owing to the rising demand for freshwater in domestic use, agriculture, and industrialization. A vast majority of their revenue comes from states hit hard with drought. 10 Stocks To Buy For 2020. Water stocks can be a choice for those seeking to diversify. Aqua America Inc. shareholders have been enjoying 12 years of consecutive dividend growth. The best water stocks usually have at least one of the following characteristics: Predictable and stable net income; Growing cashflow; Diversification; Read Also: What’re the best dividend stocks? Water stocks and funds worth buying: — American Water Works Co. — Essential Utilities — Evoqua Water Technologies Corp. — Xylem — Pentair Its current market value is 21.9 billion, having an annual dividend yield of 1.5%. Primo Water currently has a Zacks Rank #2 (Buy). Here are seven ways to invest in this natural resource. In the current market environment, some investors are on the hunt for nontraditional investments to decrease risk with water stocks, says Mike Loewengart, managing director of investment strategy for E-Trade. The York Water Company (YORW) is one of the most consistent water stocks that have rewarded their customers for the longest period. "In a market that is … With $100 investment today, you can realize up to $163.23 in 2025. It is a multi-cap exchange-traded fund (ETF) focusing on companies operating in the potable and wastewater industry. If you invest in water stocks today, you will look back a year to this time and be glad you made the decision. A public utility company that provides drinking water and wastewater services to 15 million people in 46 states, American Water Works completed 21 acquisitions in eight states and added 67,000 customers in 2019. We list water stocks from around the world, covering the following sectors: water supply, wastewater treatment, water technology, water infrastructure, seawater desalination, sanitation, water technic, irrigation technology, home soda maker and water entitlements. Tina Russo. The company is waiting for regulatory approval of its $276.5 million wastewater acquisition of the Delaware County Regional Water Quality Control Authority, which was announced in September 2019 and is expected to close in late 2020. It doesn’t matter if you are buying water stocks or looking for the best penny stocks in the market; consideration and knowledge is everything. WTR’s present market capitalization is $9.9 billion and is estimated to have a 333% 10-year return. Feb 12, 2020 9:29 AM EST Original: Dec 17, 2018. Here's everything you need to know about this crucial industry, including our suggestions for the top water stocks to buy in 2021. “Water can also be a good portfolio diversifier since it does not have a liquid enough futures market to be included in the major commodity indexes,” Gunzberg says, “so it is not perfectly correlated with commodities or other assets.”, 7 Tech Stocks to Buy With Great Dividends, 2020’s Dividend Aristocrats List: All 66 Stocks, 7 Best Water Stocks and ETFs to Buy originally appeared on usnews.com. BWA Water . The current payout ratio of CWCO is 0.77%, which is higher than 51% of the over 350 companies in the regulated utility industry. The current dividend yields of the Dow Jones U.S. Water Index, S&P Global Water Index, NASDAQ OMX Global Water Index and S-Network Global Water Indexes are 1.73%, 2.41%, 1.83% and 2.33%, respectively. As of 2018, its average daily availability was 35.4 million gallons, and average daily consumption was estimated at 19.5 million gallons. It has been providing water services to millions of residents in Maryland, Delaware, and Pennsylvania since 1905. The compensation received may influence the advertising banners, content, topics or posts made on the Site. https://www.kiplinger.com/.../602112/9-best-utility-stocks-to-buy-for-2021 And by 2025, annual spending on wastewater will be over $10 billion. https://www.kiplinger.com/.../601355/top-rated-utility-stocks-to-buy-now This The payout was a 4% increase from the previous rate. Factors that lead to this dreadful grade include an estimated 240,000 water main breaks per year, and an estimated 6 billion gallons of water wasted every day. We are compensated to provide our opinions on products, services, websites and various other topics. Its current dividend yield is 2.19%, which equals 3-year average growth of 5.77%. The company ended the quarter with $169 million in cash, $1.45 billion of total debt and $326 million available under its revolving credit facility. This ETF gives investors exposure to the clean water sector and invests in 35 companies. WTOP.com | Alexa | Google Home | WTOP App | 103.5 FM, Sign up for WTOP's coronavirus newsletter, With ambassador picks, Biden faces donor vs. diversity test, Cheney challenger Stefanik says GOP must work with Trump, Republicans promote pandemic relief they voted against, Consulting firm Guidehouse’s new Tysons HQ will mean 900+ new jobs, Tech entrepreneur joining Democratic race for Md. In January from 2020, YORW paid 18.02 cents per share dividend to its shareholders, being their 2019 fourth-quarter dividend. This water company is a utility serving California, Washington, New Mexico, and Hawaii, and American States Water Co. Year to date 2019 California Water Service Group is up almost 9%. As I’ve done in the other videos, I want to show you a couple of utility funds for that broad exposure to the theme. Your email address will not be published. This broad exchange-traded fund … Water stocks can be a choice for those seeking to diversify. https://www.personalincome.org/water-stocks-on-the-rise-2020 Price and Consensus: PRMW. The company boasts of $2.0 billion market value, 1.7% annual dividend yield, and projected to have a 10-year return of 314%. Investors are always on the lookout for markets that can provide a haven even when other stocks aren't doing so well. First, the leading water stocks should have predictable and stable, if not growing, net income every year. But of the 20 or so that I looked at, only a couple were actually down in the … Americans and consumers alike never really change their water consumption habits (aside from global catastrophes related to the weather). A particular stock may be down today as a result of negative market reactions and eventually bounce back within a month. “If you’re looking at regulated utilities, water companies are a very attractive opportunity.”. That content, advertising space or post may not always be identified as paid or sponsored content. is one of … Pentair, a water treatment company, demonstrates earnings potential because of residential tailwinds that position the company to “outgrow peers given high leverage to this end market,” says Underhill, who has a 12-month price target of $54. Investing in water can be a lucrative move, but risk is involved in the form of legal, regulatory and demand issues. 5 Water Stocks and ETFs Beating the Market. On January 10, 2020, the company announced its quarterly dividend of $0.2496, which was received by shareholders on February 21, 2020. Its 2019 annual return was 9.2%, and the 10-year return rate predicted to be 265%. Contributor Group. The stock has … Looking at long-term projection, by 2025, the least possible price and the best possible price would be $302.0135 and $408.6065 respectively. In less than 10 years, that percentage could reach 70%. CWCO's market cap is $242.85 million. Investors seeking investments to diversify their portfolios may be…. California Water Service Group is the third-largest in the U.S. water utility industry. The top holdings of these ETFs are Advanced Drainage Systems Inc., Waters Corp., and Xylem Inc., respectively. For more than 200 years, shareholders have been enjoying regular payouts from the company. Today, we use about 30% of the world’s total accessible renewal supply of water. Based on those criteria, we chose the top water ETFs for 2020: Invesco Water Resources ETF (PHO) This water ETF tracks the NASDAQ OMX US Water Index, which consists of 34 water stocks, most of which are mid- to large-size U.S. equities. 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