There are many different companies that can give investors exposure to the water business; here, we continue a review of the 5 best water stocks by Nikolaos Sismanis, contributing editor at Sure Dividend.

The York Water Company (YORW) is a company with two very unique characteristics. Firstly, The York Water Company is the oldest investor-owned water utility in the United States, having functioned continuously since 1816.

Read Part 1 of this special report here.

Secondly, and more impressively, the company features one of the most impressive dividend histories ever recorded. The York Water showcases a spectacular record of over 200 years of uninterrupted dividend payments to shareholders, including 24 years of consecutive dividend annual increases as of today.

york
Source: Annual Report

Due to the company’s very mature operations and predictable business model, York Water has seen a very steady and gradual growth in its EPS, which features a 10-year CAGR of 6.7%.

Future growth catalysts include a growing number of customers and distribution facilities, as well as acquisitions of wastewater systems.

For context, during 2020, customers grew by 1.8% to 72,681 (population served of more than 202,000). Consequently, we expect the company’s excellent dividend-per-share growth record to continue at an annualized rate of around 4% over the next five years.

This would be in-line with its latest increase and also in-line with the current trend of an improving payout ratio (currently 59%).

The company’s cash flows are unlikely to be affected by any potential recession, as was the case during the Great Recession and the COVID-19 pandemic.

The company operates within an exclusive franchised territory that is substantially free from direct competition with other public utilities, municipalities, and other entities, adding another layer of safety to its business model.

Subscribe to Sure Dividend here…