Stock Quotes in this Article: AWK, CWCO, SJW, WTR

 The following commentary comes from an independent investor or market observer as part of TheStreet’s guest contributor program, which is separate from the company’s news coverage. The opinions expressed are those of the author and do not represent the views of TheStreet or its management.

SAN FRANCISCO (Stockerblog) -- Nothing pleases an income investor more than an increase in dividends. Fortunately, some industries are doing well enough to provide these increases. One of those industries is the water distribution business.

Aqua America (WTR) recently boosted its dividend and has provided increases every year for the last 19 years. This Pennsylvania based company has paid dividends for 65 years. It trades at 24 times forward earnings and provides a yield of 2.7%.


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    Water stocks provide excellent income diversification along with a portfolio of electric utilities and natural gas utilities. Water utilities provide CD beating yields ranging from 2% to 5%, according to Here are a few examples.

    SJW (SJW) is a San Jose, Calif.-based water distributor which serves the Silicon Valley area and has customers in Cupertino, San Jose, Campbell, Monte Sereno, Saratoga, Los Gatos and parts of Santa Clara County. The stock has a forward P/E of 23 and pays a yield of 2.9%.

    American Water Works (AWK) is a New Jersey based distributor of water in 35 states and two Canadian provinces. The stock trades at 16.5 times forward earnings, with a nice 3.2% yield.

    Consolidated Water (CWCO), based in the Cayman Islands distributes water in the Cayman Islands, the Bahamas, Belize, the British Virgin Islands, and Bermuda. It also operates desalinization plants. The stock trades at a forward P/E of 19 and yields 2.9%.

    To see a free list of all the top-yielding water stocks, most of which yield between 3% to 5%, visit

    At the time of publication, author had no positions in stocks mentioned.
    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books
    Investing in Brazil Stocks and The Green Light on Green Stocks.