Here is a water utility company that's dependable if you are looking for an income stock. It's not glamorous, but it will be consistently there for you - paying out dividends, as it continues to grow with projected EPS of 10%-plus every year.
American Water Works Company (AWK) provides water and waste-water services to residential, commercial, industrial, public, and other customers in the United States and Canada. The company's Regulated Businesses segment offers water and waste-water services to approximately 1,100 communities in 16 states.
The stock is known for its dividends, averaging about 2.8% with a 51% payout. The stock is steady and slow moving. From November through the beginning of February this year the stock rose 10% and is presently trading at $33.37. Since its high in early February, it has pushed against the $34.5 resistance level no less than five times, before it finally surrendered to the bears and dipped the beginning of April.
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Analysts have been losing interest in the stock, and most have given it a hold rating because it is within less than 10% of its 52-week-high growth projections. As a growth stock, interest in waning, but the stock is still a solid buy for those interested in a dependable dividend stock.
It is a good value stock in the sense that price/book value and price/sales ratios are both lower than the industry average. Its debt/equity ratio also comes in better than the industry. So it is a financially sound stock that still shows some value. Earnings are projected to grow by 11.16% for all of 2012, and another 10.04% in 2013.
Bottomline: While American Water Works Company may not be a great growth stock at this time, it is dependable. It you are looking for a good value play that is financially stable and offers consistent dividends, this is a good company to take a closer look at.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
