Is Water the New Oil?

If you require income, one of your best bets is utilities, because our society is so dependent on them.

So what would you say if I told you that you could build a nice dividend-paying team with water stocks?

Water is already shaping up to be the hot global business of this decade, and by picking the cream of the crop, you can ensure a steady flow of profits.

Here, then, is one of my favorite water stocks.

Top Water Stock to Buy Now

Just 100 years ago, Americans used as little as seven gallons of water a day. Now, we use 145 gallons a day. This exponential increase can be largely attributed to pumps and pipes. But the pipes in many urban areas are 50, 70, even 100 years old, and they leak millions of gallons a day.

They leak in, too � dirt, agricultural chemicals, bugs and rodents get in and poison our basic water supply. Obviously, this is a huge problem � especially in a big city. Now, replacing these old pipes is a nightmare. For example, they’ve been working on this for ten years in New York City, and the latest estimate is that one replacement pipe for the main water supply will be ready in 2020! The EPA has said that public water systems need a $150 billion upgrade immediately!

Aqua America (WTR), the nation’s largest U.S.-based publicly traded water company, has come up with a solution to this massive problem. An answer that replaces millions of miles of rusty, unhealthy water pipes with shiny, new, sanitary pipes for pennies a foot! Plus, not a single street will be dug up. Not a single backhoe will be hired. Because the brand-new pipe is slid down inside the old one, creating a seamless sleeve!

Aqua America operates as a holding company for regulated utilities providing water or wastewater services to 2.8 million customers. The company serves residential, commercial, fire protection, industrial, water, and wastewater clients and has operating contracts and other customers in such far-flung states as Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Florida, Indiana, Virginia, Maine, Missouri, New York and South Carolina.

Many towns have their own water company, and until recently, they have been relatively simple to own and manage. But the EPA is pushing local water utilities to become stricter regarding pollutants. Many of the 53,000 water utilities in the U.S. are not equipped to fend for themselves in a new regulatory environment. Consolidation must occur. Facing the burden of regulation, many municipal water companies will simply sell out to private operators like Aqua America (WTR). Aqua America is highly acquisitive and will continue to add business through smart purchases.�

For investors like us, this is a huge opportunity. Aqua America is a must-own with a yield of 2.8%.