Water is the most important natural resource on Earth and also the most important commodity. Water is the basic need for human survival. Over 70% of the earth’s surface is covered with water, but only less than 1% of it is fit for human consumption.
The way we manage our water resources today is not only critical for us, but also for future generations. Historically, water has been owned and managed by the local and state authorities to ensure that its citizens have access to water at the right price. But over the years, many people are arguing that private companies should take over the water resources so that it can become more cost-effective and they can handle it better. Although privatization might lead to the profiteering of the most needed commodity, it also provides more investment opportunities and a faster pace of development.
So, investing in the water stocks of these private companies can bore huge returns in the future. Following are the steps to start investing in water stocks:
- Research completely on the companies which are into water
- Decide if you want to buy the stocks or trade them
- Open an account accordingly
- Place your trade associated with the water stock
It is worth investing in water stocks because these stocks are regarded as very stable and less volatile as compared to stocks of other companies.
Now, let’s look at some of the best water stocks to invest in:
- American Water Works Co. Inc. (NYSE: AWK): American Water Works provides water and wastewater services to 30 states in the US and in some parts of Canada. This stock continues to be one of the solid performers as it climbed 35% in 2019 with an increase of 4% from the previous year, making it one of the hottest water stocks to buy.
- California Water Service Group (NYSE: CTW): California Water Service Group is a utility company serving New Mexico, Washington, California, and Hawaii. This stock is up 112% from the last six years. A vast majority of the company’s revenue comes from the states that hit hard due to drought.
- Aqua America Inc. (NYSE: WTRG): Aqua America is a holding company for a group of regulated water utilities that serves 3 million customers across 13 states in the US. Although this water stocks is flat due to the coronavirus pandemic, it is up 56% from the last three years.
- American States Water Company (NYSE: AWR): American States Water Company is a California-based services company specializing in water and electricity. This water stock is one of the solid performers during the last eight years and has been one of the best performing water stocks in the portfolio.
- Primo Water Corporation (NYSE: PRMW): Primo Water Corporation is a Florida-based company that provides home and office bottled water delivery services and water filtration services in the US and Europe. The current dividend yield of this company is 1.48% with a positive earning of 65% on average in the last four quarters. This stock has gained 10.3% over the last three months and is currently ranked at Zacks Rank 2.