“After a natural disaster, safe drinking water is a priority. Humans can live longer without food than water, so communication about clean water is essential to help avoid the risk of cholera, dysentery, malnutrition, famine, and death.”
– Tae Yoo
As established multiple times, water is the driving force of humanity, and to thrive, we need clean water. Investing in water stocks not only helps us but also provides for ample funds to build the required infrastructure. This, in turn, will help us to keep up with the water demand and supply. The human race will perish without clean drinking water, and the onset of the pandemic has made saving our water bodies and resources even more crucial.
More than 1 million miles of pipelines are owned by Water utility operators. These pipelines are buried under the soil, and many of these are nearing the end of service life. According to the Water and Wastewater Equipment Manufacturers Association, an estimated investment of 750 billion dollars is required to expand and maintain the drinking water and wastewater service. And to meet the demand for the next 20 years.
Best water stocks to purchase in 2021:
“We forget that the water cycle and the life cycle are one.” — Jacques Yves Cousteau.
Some of the best water stocks that you can purchase are as follows:
Consolidated Water Company CWCO
CWCO was founded in 1973 in Grand Cayman. It is an important water stock to look out for. The company currently yields an annual dividend of 2.2 percent. Since its founding, the company has seen much progress and discovered a nice niche for itself in the water business. Their growth has progressively been exponential, and they use a desalination process that helps provide water where naturally occurring water is either contaminated or portable water is scarce or unavailable. Consolidated Water has since grown to more than 76 million dollars in annual revenue.
Revenue increased 11.4 percent year-over-year to 17.7 million dollars, caused by increases of 3.3 million dollars in the services segment and 0.2 million dollars in the manufacturing segment. Retail revenue declined due to an 18 percent fall in water sales volumes stemming from a hit to the tourism industry during COVID-19.
Gross profit fell by 7.5 percent year-over-year to 6.2 million dollars, while the company did experience a net loss of 1.4 million dollars, and EPS also fell by 18.2 percent for the quarter. Cash and cash equivalents at quarter-end stood at 38.2 million dollars.
Algonquin Power and Utilities AQN
Algonquin Power and Utilities Corp trade on both the Toronto Stock Exchange and New York Stock Exchange under the ticker AQN. The company has an annual dividend of 3.9 percent and deals with renewable power and utility. The company was founded in 1988 and has massively grown ever since.
Algonquin Power and Utilities’ three-part businesses include regulated utilities such as natural gas, electricity, and water, non-regulated renewables such as wind, solar, hydro, thermal energies, and global infrastructure.
Algonquin Power and Utilities serve more than 1 million connections in The US and Canada. They also provide renewable and clean energy facilities that are largely (approximately 93 percent) under long-term contact with inflation escalations. Thus investors can consider this company while investing in water stock.
Essential Utilities Inc
Essential Utilities Inc is one of the top ten best water stock companies and ETFs to invest in 2021. The company offers drinking water and wastewater management, treatment, infrastructure, and services to its customers. Essential Utilities Inc serves about 5 million people across 10 states under its Aqua and Peoples Brands Essential Utilities reaffirmed its non-GAAP EPS guidance for 2020. The company expects the number to be at the top end of the guidance range of $1.53-$1.58.
“Together, we have the power to inspire, connect, and deliver on new opportunities and rich experiences that can open doors to innovation and progress while growing global economies and increasing well-being.”
For our future generations to sustain on this planet, it becomes detrimental for us to save and conserve this invaluable resource, and investing in water stocks might be a useful way to do so. Water as a commodity is untouchable in the water stock market as its demand will always be high. Hence investing in water stocks will prove to be futuristic and lucrative.