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, 2020s Dividend Aristocrats List: All 66 Stocks, 7 Best Water Stocks and ETFs to Buy originally appeared on usnews.com. 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. 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. 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. Best Performing Indian Stocks of 2020-YTD Best Performing Renewable Energy Stocks of 2020-YTD Best Performing Russia Stocks of 2020-YTD Best Performing Water Stocks of 2020-YTD Best Performing Agriculture Stocks of 2020-YTD Best Performing Airlines Stocks of 2020-YTD Best Performing Blockchain Stocks of 2020-YTD Best Performing Natural Resources Stocks of 2020-YTD While these companies may not have the same regular, governmentregulated revenue stream that a utility does, properly managed growth and expense control can make these companies some of the most valuable water stocks to invest in. In the third quarter of 2020, Middlesex Water's regulated and non-regulated businesses contributed about 91% and 9%, respectively, of its revenue. For those who are not familiar with recycled water, which seems uncommon outside the hot and dry southwestern United States: It's produced by treating and purifying wastewater and is distributed to the communities the company serves in a system of pipes separate from the ones that supply potable water. As a value investor focused on fundamental analysis and long-term inve Dit momentum kan mogelijk de The company is forecasting earnings-per-share in a range of $2.40 and $2.50, which would reflect a meaningful earnings acceleration versus 2020. Equity Top: Water Utilities The U.S. water utility industry is fragmented, with many municipalities owning their own systems. Alliance Pharmaceuticals . Finance. Log in to your WTOP account for notifications and alerts customized for you. Brett Owens Contributor. The largest water company stocks are Aqua America (WTR) and American States Water (AWR.) EPS = earnings per share. Water utilities operate water treatment plants, or distribute water to residential and commercial customers. Essential Utilities reported net income for the first quarter of $51.8 million on revenue of $255.6 million, an increase of 27% year over year. NOVA is easily one of the best utility stocks of the past year, more than quadrupling since this time in 2020. Analysts' opinion: 5 Strong Buy, 1 Buy, 5 Hold, 1 Sell, 1 Strong Sell The pace of consolidation should accelerate due to the COVID-19 pandemic, which is leaving many states and municipalities cash-strapped. 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. AQUA noted that it is prioritizing capital deployment in 2020 in end markets and that it expects will grow and operate without material project delays and cancellations in order to preserve liquidity and noted an outlook for neutral to positive growth in six of its 10 key end markets in the second half of 2020. Capital Innovations has a buy rating for AQUA with its 12-month price target increasing to $18 a share. 5 Water Stocks and ETFs Beating the Market. However, the industry's biggest player also has regulated operations in 14 more states, making it the most geographically diverse company in the industry. Both of these companies fit within the realm of the water utility space. Water stocks can be a choice for those seeking to diversify. They are stewards of a natural resource, Doerr says. This type of setup conserves potable water for drinking and other uses inside homes and businesses. If youre looking at regulated utilities, water companies are a very attractive opportunity.. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. This guide is meant to help the intelligent investor find the best water stocks to invest in and to provide relevant information to help investors allocate their capital wisely. Their debt-to-equity ratios have historically been among the lowest in the group and that's true currently. **Held its initial public offering in May 2016. The company has a strong position in the developed markets and growing exposure to Southeast Asia, where smart water infrastructure spending is increasing significantly, he says. De markt voor waterstof en brandstofcel autos staat nog in de kinderschoenen. Water utilities are considered more recession resistant than other utilities, since a higher percentage of their demand comes from residential usage. American Water Works is the best bet for most investors. Middlesex Water and York Water, for instance, might appeal to investors who are particularly conservative. Cumulative Growth of a $10,000 Investment in Stock Advisor, The Best Water Stocks of 2020 -- Are Any Buys for 2021? This water fund offers a good cross-section of water stocks. 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. A typical water ETF invests in water utilities and companies involved in water purification, sewer and pipeline construction, and related equipment. is nonetheless a refreshing drink of water compared to some of 2019's new stocks. The company has raised its dividend for 48 consecutive years. Global Water Resources operates as a regulated water, wastewater, and recycled water utility primarily in metropolitan Phoenix. ET Het aandeel noteert op het mom (That number will decrease by one once American Water closes on its sale of its New York state business.). Indeed, its industry-leading size and geographic footprint are key competitive advantages. Second, Sabesp is the only non-U.S. based company. This is no small thing. Here are picks from several top experts who follow the sector and contribute to MoneyShow Best Balance Transfer Credit Go "Green" With Water Stocks The Best Utility Stocks And Dividends For 2021. Investors seeking investments to diversify their portfolios may be. FACEBOOK. Dit bedrijf is marktleider op het gebied van brandstofcellen. Water Stock #3: Ecolab Inc. (ECL) Dividend Yield: 0.9%; Ecolab is the industry leader and generates annual sales of roughly $15 billion. Find out if these funds are right for you and which are the best water ETFs in 2020. Data as of Dec. 22, 2020. It seems worth watching, but with a high debt-to-equity ratio of 3.4 and less than a 5-year track record as a publicly traded company, its stock isn't the best fit for conservative investors. Then Ill reveal five of the best utility stocks I found searching in a group of 300-plus companies. During the 2010s, its population increased by about 18%, according to the U.S. Census Bureau. Its one of the best bottled waters and absolutely safe to drink. The PowerShares Global Water UCITS ETF seeks to mirror the performance in terms of price and yield of the NASDAQ OMX Global Water Index, which again tracks the price of the largest water-related companies in the world. Refine Your Matches. 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. Evian is owned by a French multinational corporation Danone SA (OTC:DANOY), and its one of the most popular bottled water brands. 4. At 0.64%, the fee is moderately high for an ETF, but the fund's stock lineup is impressive, and the fund is well managed. 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. Dikke kans dat deze 4 aandelen in 2020 gaan knallen! Toch wisten we net als vorig jaar weer een aantal veelbelovende penny stocks te selecteren. 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. Market value: $21.7 billion. Top Water Company Stocks. Im going to explain why utility stocks need to be in your portfolio, why they could produce double-digit returns in 2020. Commodities Corner Waters cheap, but water-related stocks have heated up this year Published: Oct. 11, 2019 at 11:54 a.m. Though the overall space underperformed the broader market this year, there was at least one outperformer. 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). Dit prachtige groeibedrijf bezit of heeft licenties voor de rechten van meer dan 90 farmaceutische en healthcareproducten. Uniquely for this space, it pays its dividend on a monthly basis, rather than the more typical quarterly schedule. This Stock Advisor launched in February of 2002. But remarkably, the analyst set isn't budging from their bullish positions. Het bedrijf wist vanaf 2014 de omzet op te krikken van 68 miljoen tot meer dan 106 miljoen dollar. The Phoenix Metropolitan Area has been one of fastest growing metro areas in the country for some time. Data sources: YCharts and Yahoo! WTOP.com | Alexa | Google Home | WTOP App | 103.5 FM, EU chief says AstraZeneca shortfalls slow vaccine campaign, Child border crossings are surging, straining US facilities, Warp-speed spending and other surreal stats of COVID times, Outbreak at Loudoun high school linked to cheerleading competition, New kid, new normal: How one family has fared a year into the pandemic, Fairfax County schools plan five days of in-person learning this fall, Senate confirms Isabel Guzman to lead small biz agency, DoD's new Adaptive Acquisition Framework takes new approach to tailoring procurement strategies, Building back greener: GSA has prime opportunity to lead federal climate change initiative, Register for Federal News Network's DoD Cloud Exchange. In the third quarter of 2020, Middlesex Water's regulated and non-regulated businesses contributed about 91% and 9%, respectively, of its revenue. Here are seven ways to invest in this natural resource. Two notes before we move on to our top three 2020 performers: First, Essential Utilities is the new name of the former Aqua America, which became effective in February following the close of the company's acquisition of Peoples, a natural gas utility serving western Pennsylvania. Moreover, their dividend payout ratios (dividends paid/net income) have also been relatively low. With a highly fragmented industry and the urgent need for massive investment in water connections, Best Utility Stocks: My Top 3. Investors who are seeking income might find the higher dividend yields to be attractive, says Jodie Gunzberg, chief investment strategist at Graystone Consulting, a Morgan Stanley business. Evian. Here are 6 utility stocks to buy for dividends and stability. TWITTER. 2020 remains a volatile market year, and that's great for utility companies. It also operates water and wastewater systems under contract for municipal and private clients in New Jersey and Delaware. All of these water stocks are listed on either the New York Stock Exchange (NYSE) or the Nasdaq. A.O. Updated Nov 3, 2020. The second category of best water stocks are service companies that may augment or supplement the local utility provider. Investors who are beginning to build their water investment portfolios might want to start with the Invesco S&P Global Water Index ETF. It's used outdoors for purposes such as irrigation. Investing in a water ETF can be a convenient way to gain exposure to the water industry with one fund. These 10 water utility stocks are rated highest by the TheStreet Ratings value-focused methodology. 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. It's obviously no longer a pure-play water utility. SEE ALSO: 20 Best Retirement Stocks to Buy in 2020 American Water Works. Here's how the 10 largest water utility stocks with market caps greater than $300 million (meaning they're at least small-cap stocks) stacked up by performance in 2020, as of Dec. 22. Essential Utilities is a Pennsylvania-based water and wastewater utility company, formerly called Aqua America. Pixabay/Public domain. Veolia has built more than 250 water and wastewater treatment plants in the Asia-Pacific area over the past 20 years, making it one of the company's largest water resource markets. PHO, PIO, and FIW are the best water ETFs for Q1 2021. The PowerShares Global Water Portfolio also tracks the same index. @themotleyfool #stocks $AWK $WTRG $AWR $CWT $MSEX $SJW $SBS $YORW $ARTNA $GWRS, American Water Works Q4 Earnings Cap Off a Solid Year, American Water Works Earnings: What to Watch, American Water's Earnings Are Benefiting From Global Warming and a Military Base Winning Streak, 3 Dividend Stocks That Should Pay You the Rest of Your Life, Copyright, Trademark and Patent Information. By Nathan Reiff. Water stocks can be a choice for those seeking to diversify. All rights reserved. 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. Water companies have the potential for attractive long-term total returns in the low double digits, he says since there is an estimated $5 trillion to $23 trillion in infrastructure and technology investment backlog, he says. 2. Were motley! American Water also has market-based businesses, including military services and homeowner services operations. Middlesex Water owns and operates regulated water utility and wastewater systems in New Jersey, Delaware, and Pennsylvania. Theyre also an excellent environmental, social and governance, or ESG, play, she says. Copyright 2021 by WTOP. LINKEDIN. Data as of 03/11/21. Beste waterstof en brandstofcel aandelen: Conclusie. Its a spring water, and rich in sodium and minerals. The Best New Stocks to Buy in 2020 (And 2 to Avoid) by: Ken Berman. The combination of these attributes gives it an edge in acquisitions. Its status as the industry's largest and most geographically diverse company provides it with a competitive advantage in acquisitions that should prove sustainable. The Zacks Consensus Estimate for Primo Waters 2020 and 2021 earnings has moved up 20.9% and 17.3%, respectively in the past 60 days. Het aandeel heeft op dit moment een marktkapitalisatie van 1,9 miljard dollar en heeft beursnoteringen op de Toronto Stock Exchange en de Nasdaq. Returns as of 03/17/2021. 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. With 2020 soon to be history, we're going to look at the year's best-performing stocks in the water utility industry. website is not intended for users located within the European Economic Area. The stock has Opinions expressed by Forbes Contributors are their own. Back in 2016, Veolia also extended its contract with the Milwaukee Metropolitan Sewage District for its ongoing wastewater collection and treatment services. This ETF gives investors exposure to the clean water sector and invests in 35 companies. Wall Street's Projected 5-Year Annualized EPS Growth. Its part of our 11-video series, uncovering the best companies in each stock sector. 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. Returns that have beaten the S&P 500 are boldfaced. Water is one of the planet's most coveted and widely used resources. American Water is based in New Jersey and counts that state and neighboring Pennsylvania as its two biggest regulated water and wastewater utility markets. 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 Intelligences 56-company utility universe, Doerr says. FIW manages more than $500 million in assets, and its exposure includes 47% in the industrials sector, 25% in the utilities sector and 12% in the health care sector. The company has significant growth potential. Investors seeking investments to diversify their portfolios may be drawn to water stocks since the companies produce high earnings growth and pay dividends. The companys 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. 1. That said, there are features to like about some of the other companies. Water stocks and funds worth buying: American Water Works Co. Essential Utilities Evoqua Water Technologies Corp. Xylem Pentair Door middel van deze brandstofcellen kan waterstof omgezet worden in elektriciteit. It's a Brazilian water utility, and its stock has been volatile over the long term due to political and currency risks and frequent droughts. Water Utilities Stocks. The Invesco Water Resources ETF is based on the Nasdaq OMX US Water Index and focuses on U.S.-based companies that create products designed to conserve and purify water for homes, businesses and industries. Dividend yield: 1.7%. How about Global Water Resources? The XLU has provided a total return of -8.8% over the past 12 months, well below the Russell 1000's total return of 21.4%, as of February 17, 2021. Consider water. 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. The company has raised its dividend every year since it went public in 2008. Smith has also issued guidance for 2021. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Moreover, the industry includes several stocks that have been long-term outperformers. *Earnings estimates provided by only one or two analysts. Beleggers zien duidelijk potentieel en hebben de waardering van verschillende aandelen al behoorlijk omhoog gedreven. Aqua America derives more than 60% of its revenues from residential water Global Water Resources has increased its dividend every year since it went public in 2016. The former builds, operates, and maintains water systems for U.S. military bases, while the latter provides warranties for various utility-related systems and components in homes. And the Federal Reserve took rates to zero in 2008 (and 2020 Market data powered by FactSet and Web Financial Group. Pentair reported first-quarter sales of $710 million, which rose by 3% year over year. In the third quarter of 2020, Middlesex Water's regulated and non-regulated businesses contributed about 91% and 9%, respectively, of its revenue. This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. On the following pages, youll find valuable information on the 40 bestwaterstocks to buy right now. 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. Every day TheStreet Ratings produces a list of the top rated stocks.