The outbreak of the pandemic has highlighted the importance of water, hygiene, and wastewater services. Water is an invaluable resource and is arguably the most exploited. While some people struggle to obtain clean water, others struggle to get clean water at all. This is why it’s important for investors to keep their funds in water stocks since they will always be a necessity.
The essence of investing your funds in water stocks
Water utility operators presently own pipelines exceeding 1 million miles buried underground, and a major portion of these is nearing the end of their lifetime of utility service. According to the Water and Wastewater Equipment Manufacturers Association, an approximate $750 billion investment is needed.
This is important to maintain as well as expand the drinking water and wastewater service sector to meet the demand over the next 20 years. Water is a resource that is said to run out if not taken care of properly. Moreover, water is an essential commodity and, regardless of the situation, will always need to make it a sensible investment.
Therefore, investing in water stocks will be a great alternative. In the past three months, the water supply industry has returned 9.1%, higher than the Zacks S&P 500 Composite’s growth of 8.7%.
Top water stock picks for you to invest in right away
“Water is critical for sustainable development, including environmental integrity and the alleviation of poverty and hunger, and is indispensable for human health and well-being.” – United Nations.
California Water Service Group (CWT)
The California Water Service Group is a company which is known for its water stocks. It is based in San Jose and is a CA-based company that provides water and wastewater services in a few states. They aim at investing nearly 809 million dollars to about 828 million dollars between 2019 and 2021 to strengthen their infrastructure.
This is to provide their facilities to a larger geographical area, which makes the company a great alternative if you are looking to invest in water stocks. The company delivered a positive earnings surprise of 70.2% in the last quarter. The current dividend yield of the company is 1.63%.
These statistics clearly state that the company has been performing consistently over the past few months despite the pangs of the pandemic, making it a lucrative investment in water stocks.
Primo Water Corporation (PRMW)
Primo Water Corporation also falls under the best water stocks to invest in right now. This Tampa, FL-based company provides home, and office bottled water delivery and water filtration service in North America and Europe. Their main focus is on cost containment initiatives to enhance margins and expand their operations in the European residential area.
The company displayed a positive earning of about 65% on an average in the past four quarters. Therefore, you can consider investing in their water stocks for 2021.
Essential Utilities, Inc WTRG
This PA-based company in Bryn Mawr, alongside its subsidiaries, aims at providing water and wastewater, and natural gas services to its customers. They provide quality services to their expanding customer base and have a well-spread out water infrastructure.
Their long-term plan is to invest 2.8 billion dollars between 2020 and 2022 to rehabilitate, widen and strengthen water and natural gas pipeline systems. Their strong customer base is said to boost the demand and enable the company to continue its strong performance. Despite the pandemic, the company delivered positive earnings of 3.9%, on average, in four quarters.
The current earning yield of the company is 2.11%. The Zacks Consensus Estimate for Essential Utilities’ 2021 earnings and revenues suggests a rise of 5.6% and 34.2%, respectively, from the year-ago itemized aggregates. These statistics make this company a safe and profitable investment.
Invest in water stocks to acquire higher returns on investments within a short period. Water is the only resource that will stay unaffected even during the toughest times. As citizens of this world, it is detrimental for us to leave a better world for the forthcoming generation and provide for a pleasant environment in the coming times. It is the need of the hour to do our best to save water, and water stocks are the way to do so.