WTRG - Essential Utilities: A Water Utility Whose Yield Can Be Bought At A Rare Discount
2024-02-04 10:25:51 ET
Summary
- Water utilities, with current dividend yields well above historical averages, are candidates for "reversion to the mean" price appreciation.
- Essential Utilities is a time-tested water utility company with a relative yield some 50% above its historic norm, as well as a history of dividend growth.
- Operating as de facto legal monopolies, water utilities (like WTRG) have competitive advantages that ensure dividend consistency--an important aspect to mean reversion taking place.
- Relatively recession-resistant, Essential Utilities is reasonably priced in today's stretched overall stock market and worthy of consideration for patient, safety-oriented dividend seekers.
Editor's note: Seeking Alpha is proud to welcome Dividend Cats as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » ...
Essential Utilities: A Water Utility Whose Yield Can Be Bought At A Rare Discount