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Like most utility stocks, Middlesex pays a dividend (just over 1%), while Tetra pays a smaller dividend of 0.7%. And with a rocky market amidst war and ongoing inflation concerns, utilities and infrastructure are narrative and numbers the value of stories in business a good hedge against volatility. Alkaline Water Company Inc is a beverages-non-alcoholic business based in the US. Alkaline Water Company shares are listed on the NASDAQ and all prices are listed in US Dollars.
Water is also used in a variety of commercial applications including industrial, thermoelectric power, irrigation, and mining. In fact, agricultural irrigation accounts for nearly 70% of fresh water consumption. And the energy sector is the second largest consumer of water. According to some estimates, the typical data lexatrade center uses between three and five million gallons of water every day. All of them are growing; the two water stocks are expected to grow revenues by an average of 9+% in 2022 despite disruptions to business from the ongoing COVID-19 pandemic. But up until a year or two ago, most water companies weren’t growing at all.
- On top of that, only1%of our freshwater is easily accessible, with most of the other 99% trapped in glaciers and snowfields.
- In addition, all the water stocks on this list pay dividends and are likely to increase their dividends for many years in the future.
- Irrigation-system companies such as Lindsay LNN, +0.09%and Valmont Industries VMI, +2.10%also manufacture other equipment unrelated to water.
- The Alkaline Water Company Inc. was incorporated in 2011 and is headquartered in Scottsdale, Arizona.
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Company Information
However, one benefit to regulation is that it protects the existing companies that create barriers to entry. To that end, there is a consolidation going on in the industry which is resulting in a handful of large conglomerates. That means that many of the best water stocks offer predictable cash flow and dividends that can help improve an investor’s total return.
For more information on our rental property policy, please contact our office. During a water-related emergency or outbreak, clean drinking water may not be available. Prepare yourself for an emergency by creating and storing a supply of water that will meet your family’s needs. In share market trend analysis, it’s essential to pick the sector and collect all the needed data.
WaterPik is one example of a company that produces these products.
Nevertheless, AWK stock price has increased by over 100% in the last five years as of June 2022. The utility has plans to grow its customer base and make infrastructure improvements as just two ways it plans to achieve even more capital growth. Plus, like many utilities, the company has a solid track record of paying and increasing the amount of its dividend. This article will give investors an overview of water stocks. The topics covered include why water is such a vital resource, why investors should be interested in water stocks.
Water could be the next focus for ESG investing
As well, it continued to iron out the kinks with the Kentucky Public Service Commission with regards to the acquisition of Kentucky Power announced in October 2021. If things go smoothly, the acquisition could close in the second half of 2022. Pentair reported its second quarter earnings results on July 26. The company was able to generate revenues of $1.02 billion during the quarter, which was 8% more than the company’s revenues during the previous year’s quarter, a result that missed estimates slightly.
Learn about financial terms, types of investments, trading strategies, and more. Investing in water-related businesses can be a boring business. But it’s also big business and it’s likely to become more profitable in coming years. This will largely be due to the fact that water is becoming a scarce resource. But it will also be due to ongoing infrastructure upgrades as well as the emergence of new technology that is helping to improve water quality.
Julius Mansa is a CFO consultant, finance and accounting professor, investor, and U.S. Department of State Fulbright research awardee in the field of financial technology. He educates business students on topics in accounting and corporate finance. Outside of academia, Julius is a CFO consultant and financial business partner for companies that need strategic and senior-level advisory services that help grow their companies and become more profitable.
Which Water Stocks Is Michael Burry Buying?
The legislation is good news to clean water advocates since it will expand access to clean drinking water for households, businesses, schools, and child care centers in cities and rural areas. The legislation will also invest in water infrastructure to eliminate lead service pipes. Essential Utilities is a utility company that provides drinking water and wastewater treatment infrastructure and services. It pays one of the highest dividends in the water field at 2.28% yield.
But of the 20 or so that I looked at, not one of them was actually down in the last two years. Finder.com is an independent comparison platform and information service that aims to provide you with information to help you make better decisions. We may receive payment from our affiliates for featured placement of their products or services. We may also receive payment if you click on certain links posted on our site.
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Many countries are facing droughts and shortages of clean water. You have access to water whenever you turn on the tap, so it can be difficult to think of water as a sound investment. In addition to the required paperwork, the closing water bill and applicable fees must be paid before stock can be transferred. A water stock certificate is a legal document that requires proper legal documentation to remove one party and add another. By subscribing to email updates you can expect thoroughly researched perspectives and market commentary on the trends shaping global markets.
Alkaline Water Company employs 45 staff and has a trailing 12-month revenue of around $63.4 million. ESG investors, instead of buying water-related plays, may put their focus on corporations’ water targets, just as they have done with carbon. But Water Council’s Howard cautions investors to look skeptically at companies’ water goals and targets under the guise of sustainability because most companies haven’t grappled with their water use. Unlike carbon where the impact a ton of carbon has a single metric, water isn’t fungible, since water supplies and demand on aquifers and water systems vary greatly. Water is a fragmented market and is highly regulated by municipalities, agricultural and environmental interests.
How Do You Invest in Water?
American Water Works may be one of the best examples of how boring stocks can quietly crush the market. Founded in 1886, the water utility went public at $21.50 a share in 2008 and was hovering around $160 a share in March 2022. A look at the holdings of any of these water indexes provides an easy way to start looking for suitable investment opportunities.
Real-time analyst ratings, insider transactions, earnings data, and more. MSEX stock is up 121% in the last five years and the analyst community believes the stock has an 18% upside. In addition, the company has been increasing its dividend in each build your own crm of its last 18 years. The water crisis is clearly on Wall Street’s radar, and the institutions are investing in the push to solve it. Over the last 12 months, Alkaline Water Company’s shares have ranged in value from as little as $0.27 up to $1.63.