One of the things I look for in dividend stocks is a product that I think people will want/need 10, 20, 50 years from now. I think water will be an increasingly important commodity. I have my eye on Middlesex Water (MSEX). What are some other good companies to take a look at?
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American States Water (AWR)
American Water Works (AWK)
Aqua America (WTR)
Here are a couple of the better looking ones from the CCC List. Although they all appear to be somewhat overvalued at current prices.
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I've been eyeing Veolia (VE) for a while. It's the largest garbage collection company in Europe but also has a division that builds desalination plants around the world. Not much of a dividend growth stock, although it pays a dividend. It's more of a turnaround story, paying down a lot of debt from a bad string of acquisitions. At this point there's too much going on for me to wrap my head around it and pull the trigger.
For now I'm happy with holding GE, which also has its foot in the desalination business.
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04-17-2014, 01:13 PM
(This post was last modified: 04-17-2014, 01:38 PM by DRILLINDK.)
I own AWK, and have been stalking VE for some time now. I missed my chance to load up in the low teens. I do think VE carry's a decent divi yield compared to other water and waste water utilities. I also like that they have done a good job recently of reducing debt and becoming more efficient.
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I really like WTR and want to start adding that to my portfolio. Its got a good 5yr and 10yr DGR (7.5% and 7.9% respectively). Unfortunately, I'll need to rebalance my portfolio by investing elsewhere (other sectors) before I swing back to utilities.