Water is one of the basic necessities of human life. Life as we know it cannot exist without water. For this simple reason, water may be the most valuable commodity on Earth, explains Bob Ciura, editor Sure Dividend.
It is only natural for investors to consider purchasing water stocks. There are many different companies that can give investors exposure to the water business, such as water utilities. Some other companies are engaged in water purification.
Gorman-Rupp (GRC) began manufacturing pumps and pumping systems back in 1933. Since that time, it has grown into an industry leader with annual sales of about $405 million. Today, Gorman-Rupp is a focused, niche manufacturer of critical systems that many industrial clients rely upon for their own success.
Gorman_Rupp generates about one-third of its total revenue from outside of the U.S. The company also has one of the most impressive dividend increase streaks in the market, which currently stands at 49 years. 5-year expected annual returns are 9.8%.
Consolidated Water (CWCO) was founded in 1973 as a private water utility in Grand Cayman. The company uses a desalination process that helps provide water where naturally potable water is scarce or does not exist. Consolidated Water has since grown to a $158.2 million market capitalization. It serves a wide variety of international customers. 5-year expected annual returns are 10.2%.
Stantec Inc. (STN) provides professional consulting services in the field of infrastructure and facilities internationally. This includes services in engineering, architecture, interior design, environmental sciences, project management, and project economics.
The company also undertakes water provision, transportation, and public works such as transportation planning and traffic engineering. Finally, it serves the urban regeneration, infrastructure, education, and waste industries. Stantec generates around $3.6 billion in annual revenues and is based in Edmonton, Canada. 5-year expected annual returns are 10.4%.
Pentair (PNR) operates as a pure–play water solutions company with 3 segments: Aquatic Systems, Filtration Solutions, and Flow Technologies. Pentair was founded in 1966. Pentair has increased its dividend for more than four decades in a row, when adjusted for spin–offs. Total returns are expected to reach 14.2% over the next five years.
Water could be one of the biggest investing themes over the next several decades. An increasing global population is only going to cause demand for water to rise in the future. Indeed, water stocks are appealing for risk-averse investors looking for stability from their stock investments.
