The next hot investment is water. Water, freshwater to be particular, will have a profound impact on human civilization in the coming decades. Naturally, the savvy and prudent investors will have some exposure to water in their portfolio, as the value of water rises. In this series of posts, I will cover some obvious and not-so-obvious ways to invest in water. This the first post of the series and we look at the most obvious of the investment vehicles available for water, i.e., water utilities.
The advantage of investing via utilities is that the companies provide a crucial service and have been around for over a 100 years, having stood the test the time. Lucky for income investors, the water utility companies also pay a decent dividend and all companies mentioned here are proven dividend growers.
How to Invest in Water
The water utilities industry is fairly small, with just a few players, each covering a small region of the country. The major players are summarized below. Only companies paying dividends are profiled in this article. In addition, there might be other companies that operate in utilities, but have water as just one segment of the business, instead of the main focus. This list looks are pure-play water utilities.