Friday, May 27, 2011

Top Yielding Water Utility Stocks

Water utility stocks provide excellent income diversification along with a portfolio of electric utilities and natural gas utilities. Water utilities provide CD beating yields ranging from 2.5% to 4%. There are about a dozen water utility stocks with dividends that were turned up by WallStreetNewsNetwork.com on their water utility list that was just updated. Here are a few examples.

SJW Corp. (SJW) is a San Jose, California based water distributor which serves the Silicon Valley area and has customers in Cupertino, San Jose, Campbell, Monte Sereno, Saratoga, Los Gatos, and parts of Santa Clara County. The stock trades at 20.5 times forward earnings and pays a yield of 3.1%.

American Water Works Co., Inc. (AWK) is a New Jersey based distributor of water in 35 states and two Canadian provinces. The stock trades at 16 times forward earnings, with a decent 3% yield. Earnings for the quarter ending March 31 were up over 53.6% from the previous quarter on a 7.8% increase in revenues.

Consolidated Water Co. Ltd. (CWCO), based in the Cayman Islands distributes water in the Cayman Islands, the Bahamas, Belize, the British Virgin Islands, and Bermuda. It also operates desalinization plants. The stock trades at a forward PE of 16 and yields 3.3%.

To see a free list of all the top yielding water stocks, all with yields over 2.5%, which you can download, update, and sort, check out WallStreetNewsNetwork.com.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

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