10 Best Long-Term Water Utility Stocks to Buy and Hold Forever

December 15, 2019 1 By swedendivin
7 min read
water 2825771 1920 - 10 Best Long-Term Water Utility Stocks to Buy and Hold Forever

Best water stocks to buy and own forever


If you are searching for water stocks to buy and own for a long time you should read this.

First off:

Why would i want water utilities stock?
The falling rates, local monopoly, consolidation and rising population will make the water stocks utilities a strong buy for the long term investor. Ten leading water stocks on the New York Stock Exchange rose on average just under 30 percent in 2019.

How much have water stocks risen?
Water stocks have been a particularly good investment both this year and the past three years. Overall the stock market have done very good in the last few years and water stocks have also followed the positive trend. The return from the ten leading water stock companies in the United States has yielded a return of 30 percent excluding dividends only this year.

Did you know that the longest giving dividend stock is a Water stock?
Demand for clean water will rise as the world population grows. The companies that own the water sources or infrastructure for transporting water to and from a particular city or region have a powerful monopoly.

It is no coincidence that the company in the world that has the longest dividend suite York Water, York County, Pennsylvania has distributed money to its shareholders every year for 203 years. That is something worth taking into consideration when you buy water stocks. York Water is one of the smaller water companies in North America. The company is valued at $ 580 million. The share is up 40 percent this year and the direct return is 1.6 percent. Not a very high yield. But for those who seek long term buy this is not so important on the long term. 

Two analysts are monitoring the stock. They have set the $ 53 target price on York Water, according to Marketscreener.

What is the largest Us Water stock?
By far the largest company in the US water sector is American Water Works. The company has a market value of $ 22.1 billion.
American Water Works operates water and wastewater treatment plants throughout North America. In total, their infrastructure provides drinking water to 14 million people.
The company was founded as early as 1886 and its head office is in Voorhees, New Jersey. The share is up 33 percent this year. The company gives a direct return of 1.6 percent on the current rate. Similar to York Water. The dividend is paid quarterly. The largest owner of American Water Works is the American fund giant Vanguard with 12.2 percent of the shares.

Despite the rise this year, American Water Works is not the best water share of the year on the American stock exchanges. Instead, it is the Brazilian Companhia de Saneamento, whose share rose 85 percent in 2019.

Companhia de Saneamento operates drinking water supply and treatment plants in Sao Paulo, Brazil. The stock is listed on both the US stock exchange and the stock exchange on the Sao Paulo stock exchange. The company, founded in 1973, is one of the world’s largest water companies. The company manages the drinking water supply for around 28 million people and manages the waste management for 23.7 million people. In the coming years, the company will make major investments to increase capacity. Despite the year-end, analysts see a potential increase of about 14 percent in the one-year term of the share.


The third largest of the listed water companies is Aqua America. The company has a market capitalization of $ 9.8 billion. So far this year, the share is up 34 percent.
Aqua America manages the water supply and operates wastewater treatment plants for three million households in Virginia, Texas, Florida, Georgia, Illinois, Indiana, New Jersey, North Carolina and Pennsylvania.

The company was founded in 1968 and its head office is in Bryn Mawr, Pennsylvania. The largest owner is the fund company Vanguard with just over 10 percent of the shares.
The average benchmark price among the ten analysts who follow the company is about 6 percent higher than what the stock is trading at today. The market for water companies is fragmented and consolidation is underway in North America. Smaller municipal water companies often sell in connection with larger investments in infrastructure.

The great thing about water companies is the local monopoly. This, together with increased urbanization, a growing population and low interest rates, guarantees that the water shares, despite relatively high values, are a safe investment seen over a longer period of time.




Stock Marketcap billion USD %, 2019 % 3 Years
American Water Works 22,1 33 64
Companhia de Saneamento 10,1 85 81
Aqua America 9,8 34 51
American States Water 3,2 30 90
California Water Service 2,5 8 47
SJW Corp 2 29 28
Middlesex Water 1,1 20 46
York Water 0,58 40 15
Artesian Resources 0,31 6 14
Consolidated Water 0,2 42 46



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Here are my other post about megatrends that I personaly like to follow / clickable

1/ https://swedendivin.se/blogg/new-mega-trends-of-the-world-wind-powers/


2/ https://swedendivin.se/blogg/megatrends-luxury-products/

3/ https://swedendivin.se/blogg/golden-investing-rules-part-1/

Do you have a strategy in investing?

Hint: Try to find out more about water megatrends of the world. If you find them with some stocks connected to the trends, it could be your way for financial freedom. For tips of megatrends check out my other blogpost.

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I have no business relationship with any company whose stock is mentioned in this article.


Historical returns are no guarantee of future returns.

An investment in securities / funds can both increase and decrease in value and

it is not certain that you will return the invested capital.

The return may also increase or decrease due to changes in the exchange rate.

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