Dividend Stocks

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Essential Utilities (WTRG) - >>> 3 Stocks You Can Buy and Hold Forever


Motley Fool

June 4, 2021


https://www.fool.com/investing/2021/06/04/3-stocks-you-can-buy-and-hold-forever/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


Essential Utilities (NYSE:WTRG) is a regulated water and natural gas utility provider with roughly 5 million customers in 10 states. This business isn't very exciting, but it's a stable cash-flow investment that should chug along comfortably for years.

The company grew substantially through a major acquisition last year, but it looks set to grow 5% to 7% annually through 2023. Essential Utilities operates in regulated markets, so the rates it can charge customers are visible to the public. Regulation and the nature of utility infrastructure also make it very difficult for competitors to disrupt incumbents. These characteristics make this a really stable and reliable stock, which is perfect for dividend investors.

Essential Utilities pays a 2.1% dividend yield, which is fairly attractive in today's environment. That's especially strong when you consider the additional risk assumed by higher-yield stocks in the energy or real estate sectors, for example. Essential Utilities is moving along with a 60% payout ratio, indicating that the company produces more than enough profit to sustain and grow its dividend. Given the reliable growth forecasts for the medium term, this is a stable income investment. It won't deliver huge growth, but it will continue to kick off cash.

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