Water Investment Ideas

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American Water Works - >>> A resilient money-builder stock


https://www.fool.com/investing/2020/10/24/5-great-stocks-you-can-buy-and-hold-forever/


American Water Works (NYSE:AWK) has made investors more money than you might think, thanks to a regulated business that has supported plenty of dividend growth. It provides water and wastewater services to 15 million customers across 45 states, and the rates its charges are set by public utility commissions. That makes the company's revenue and cash flow stable and predictable.

American Water's financial goals offer investors a great deal of insight regarding its medium-term prospects. Through 2024, it's targeting:

7% to 8% compound annual growth in its water rate base.
7% to 10% compound annual growth in earnings per share.
7% to 10% compound annual growth in its dividend.
$8.8 billion to $9.4 billion in capital spending.

Regulated capital expenditures to win base rate approvals should be the key driver of earnings growth, supplemented by growth moves like acquisitions. And as its earnings grow, so should its dividend. Overall, that makes American Water a reliable company to invest in for long periods of time. And if you're a proponent of ESG investing, you might want to know that the utility recently scored the highest ESG evaluation rating in the U.S. from S&P Global.

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