American Water Works Co., Inc. (AWK), American States Water Co (AWR): What Makes The Water Utility Industry Profitable

“This double-digit increase in our quarterly dividend and the stock split reflect our Board’s confidence in the company’s ability to continue to deliver solid results and its desire to have a payout ratio that is more in line with our peers”, said Robert J. Sprowls, President and CEO of American States Water Co (NYSE:AWR).

Bottom line

For investors willing to take the risk of investing outside the U.S., Sabesp should reward long-term investors who can withstand the added volatility that comes from investing in emerging markets.

As for U.S.-based companies, American States Water Co (NYSE:AWR) is the best positioned to outperform the market. In terms of company value, it’s the cheapest. Also, it has once again surpassed quarterly estimates, making it five quarters in a row, managing to boost its results by cost control and a favorable rate decision. In terms of dividend yield, both companies from the U.S. have the same dividend yield of 2.6%.

Victor Selva has no position in any stocks mentioned. The Motley Fool recommends Companhia de Saneamento Basico (ADR).

The article What Makes The Water Utility Industry Profitable originally appeared on Fool.com and is written by Victor Selva.

Victor is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.