Table of Contents
Introduction
Revenue break-down
Revenue resources
| State | ＄Million | % of Total revenue |
| New Jersey | 826 | 24.40% |
| Pennsylvania | 770 | 22.80% |
| Missouri | 349 | 10.30% |
| Illinois | 340 | 10.00% |
| California | 268 | 7.90% |
Revenue by type
Business performance and valuation
Business performance
| Year 2021 | NextEra Energy | American Water Works |
| Annual revenue and growth rate (million) | 17,069 -5.16% | 3,930 +4.05% |
| Annual operating income and growth rate (million) | 3,121 -39.35% | 1,274 -1.77% |
| Annual net income and growth rate (million) | 3,573 +22.4% | 1,263 +78.14% |
| Operating margin | 18.28% | 32.42% |
| Net margin | 20.93% | 32.14% |
Stock valuation
| 7/23/2022 | NextEra Energy | American Water Works |
| Market capitalization ($ billion) | 156.87 | 27.03 |
| Share price | 79.85 | 148.71 |
| P/E | 108.40 | 20.01 |
| Dividend yield | 2.13% | 1.76% |
| Stock performance in past 10 years (S&P 500 was＋232%) | +449% | +232% |
Long term investment metrics
Stock performance vs. S&P 500
| Company | Market Cap | Dividend Yield | Projected Annualized EPS Growth Over Next 5 Years | Stock’s 10-Year Total Return |
|---|---|---|---|---|
| NextEra Energy | $139 billion | 2.4% | 8.9% | 449% |
| American Water Works | $23.8 billion | 2% | 8.3% | 378% |
| S&P 500 | N/A | 1.47% | N/A | 232% |
Dividends
Among the best stocks to consider buying now are dividend-paying shares of well-established, profitable companies that sell products and services customers need during both good and challenging economic times, including during recessions. Two such companies are U.S. water and wastewater utility giant American Water Works (AWK 0.73%)
American Water Works is the largest and most geographically diverse U.S. water and wastewater utility. It provides regulated utility services in 14 states and has a market-based business that provides services on military bases throughout the country.
The company was founded in 1886 and is poised to thrive well into the future. The beauty of regulated water utilities for investors is that they provide a product that is essential and has no substitutes, and they’re legal monopolies, so competition isn’t a concern.
American Water Works’ catalysts for growth include industry consolidation, the need for water system infrastructure upgrades throughout much of the country, and climate-change-induced rising temperatures.
The company has raised its dividend every year since it went public in 2008. Moreover, through 2026, management expects dividend growth to average at the high end of the 7% to 10% range.
Dollar-cost averaging is your friend
Dollar-cost averaging involves investing the same dollar amount at some set interval, such as monthly or quarterly. Dollar-cost averaging your way into your full position (or better yet, indefinitely, if possible) will prevent you from buying your entire stake in a stock right before a significant drop.
Related articles
- “Considerations as a dividends investor“
- “Dividend-rich industries and 6 big differences from Taiwan“
- “Why dividends disappeared suddenly these years?“
- “The most two serious killers to investors inflation and interest rate“
- “Coca-Cola has been inferior to Pepsi in and even return rate is negative in past 10 years!“
Disclaimer
- The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
- I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers’ direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.
