#1 - American Water Works (NYSE:AWK)
Heading up this list of water stocks is one of the leading water utilities in the country. American Water Works (NYSE:AWK) has met or beaten earnings per share (EPS) expectations in each of the last 20 quarters. And while the same can’t be said of revenue, the company benefits from the simple fact that individuals have to pay their water bill.
From a balance sheet standpoint, American Water Works has a profit margin of 3.99% which is nearly double the sector average. And the recent sell-off in AWK stock has the company at a price-to-earnings (P/E) ratio of 21x earnings which should be easily supported by the company’s revenue expectations over the next five years.
Utility companies are a favorite of dividend investors. The company’s 1.72% dividend yield won’t get many people excited. However, it’s payout of $2.62 on an annual basis is considerably higher than the sector average of $1.81. And the company has increased its dividend in each of the last 14 years.
About American Water Works
American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.
Read More - Current Price
- $121.56
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 2 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $141.80 (16.7% Upside)
