Latest news with #AmericanWaterWorks
CNBC
2 days ago
- Business
- CNBC
Two ultimate defensive stocks to ride out anymore volatility in this already tumultuous year
We are adding two classic defensive plays to our All-Weather Stock List , both tied to industries that can weather any type of economic hiccups: water and tobacco. We launched the All-Weather List in February with the idea that 2025 would be a more volatile year than typical and that's turned out to be the case. Our strategy of hiding out in stocks that can thrive in any kind of economy continues to work even as the S & P 500 has mostly recovered from the April lows reached in the wake of aggressive tariffs from the Trump administration (that were subsequently walked back). Here's a look at the current members and how they are doing: Six of the nine picks are in the green or flat since we added them to the list, with Netflix as the best of the pack, up 14%. None are down more than 5%. While the stock market seems to be assuming most of the stiffest tariffs get walked back and the economy skates through mostly unscathed, there are troubling signs brewing. Most recently, JPMorgan CEO Jamie Dimon warned that key economic readings could start to deteriorate at any moment. So we found two more names for the list to weather any possible economic storm. Reminder, the goal of the All-Weather list is to use our CNBC Pro resources — top analyst research, stock screening tools of the Pros — to identify stocks that can thrive in any type of market. New addition: American Water Works American Water Works (AWK) first caught my eye because it appears on a list generated by Trivariate Research that contained the top performers in the S & P 500 during the tariff correction from Feb. 18 to April 8. AWK gained more than 10% in that stretch, notes the firm run by Adam Parker, formerly the top stock strategist at Morgan Stanley. Parker was sending out defensive ideas as a hedge even though he said many of his clients believe stocks will continue to grind higher. AWK YTD mountain American Water Works (AWK), YTD AWK likely garnered interest during the correction because its revenue is immune to tariffs, being 100% domestic. Not to mention, it also has revenue that would remain stable even if we fell into a recession. The water utility sports a dividend yield of 2.3% so investors get regular income along with a protective put against another tariff flare-up in the market. Traders scrambled to this stock in April and would do so again. New addition: Altria Altria (MO) made a list from UBS equity strategists who were looking for "companies that exhibit safe haven characteristics via high operational quality and low volatility while paying a material dividend." Altria pays a nearly 7% dividend and has a beta of just 0.5%. So this thing pays you a 60% higher yield than a 10-year Treasury and barely budges when the stock market freaks out. The defensive stock also appeared in one of Trivariate's defensive baskets. Parker's firm identified Altria as a stock that works in market downturns, but which also has good price momentum and a cheap valuation relative to its history. MO 5Y mountain Altria, 5 years Altria's stock also has been on a roll the past few years, with some investors likely attracted to some growth from the smokeless tobacco trend. Altria makes the On! nicotine pouches. The shares were up 30% last year and are up 15% this year through Wednesday (excluding the high dividend), lifting the stock to a six-year high. That makes me a bit uneasy, but the 7% dividend should allow you to sleep at night.
Yahoo
22-05-2025
- Business
- Yahoo
California American Water Adds 15 Water Connections Through Mesa Del Sol System Acquisition
On May 21, California American Water, a subsidiary of American Water Works Company Inc. (NYSE:AWK), has completed its acquisition of the Mesa Del Sol water system in the Corral de Tierra area of Salinas. This acquisition adds 15 new water connections to the company's existing base of ~40,000 connections in Monterey County. It was made possible after the physical interconnection of Mesa Del Sol with California American Water's Toro Park system. A technician in a deep-water treatment facility, ensuring clean water for public safety. This move aims to resolve long-standing water quality issues in the Mesa Del Sol area. Spencer Vartanian, Director of Operations for California American Water, stated that the company's experience in providing water service throughout the Monterey Peninsula made them a natural fit for this consolidation. The acquisition will provide Mesa Del Sol residents with access to California American Water's comprehensive services, which include a bilingual website, online billing & payment options, conservation programs, and affordability initiatives. California American Water is the largest regulated water and wastewater utility company in the US that serves over 14 million people in 14 states and on 18 military installations with a history dating back to 1886. This acquisition is part of American Water Works Company Inc.'s (NYSE:AWK) broader strategy of expanding its operations through systematic acquisitions. In 2024, American Water Works completed 13 acquisitions that added 69,500 customers, and a total of 90,000 customers overall that year. American Water Works plans to invest between $40 billion and $42 billion from 2025 to 2034 in infrastructure repairs, replacements, system resiliency, and regulated acquisitions. While we acknowledge the potential of AWK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AWK and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
15-05-2025
- Business
- Bloomberg
Stock Movers: Dividend Paying Stocks, Walmart, Deere
On this episode of Stock Movers: - Dividend Paying Stocks featuring American Water Works (AWK), Procter & Gamble (P&G), and Coca-Cola (KO) are outperforming the S&P 500. This comes on the back of the manufacturing and the retail sales data released earlier today. It is also boosting the bets that there could potentially be two rate cuts from the Federal Reserve based on the swaps markets right now. - Walmart (WMT) shares are falling. While the retail company delivered another quarter of solid sales and earnings growth, they cautioned that tariffs and increasing economic turbulence means even the world's largest retailer expects to raise prices. Sales rose 4.5% at US Walmart stores open at least a year for the quarter ended April 30, while adjusted earnings were 61 cents a share. The results are better than what Wall Street analysts were expecting, suggesting a decision to lower prices to win market share is paying off for the chain. - Deere & Co. (DE) shares hit a record high after earnings beat the highest of analyst estimates, even as the world's largest farm machinery maker trimmed its profit outlook for the year due to the impact of Donald Trump's tariffs. Investors are betting the worst is over for Deere as farm markets stabilize and frictions between China and the US over tariffs seem to be abating, paving the way for a recovery in sales next year.
Yahoo
10-05-2025
- Business
- Yahoo
4 Stocks to Watch That Recently Declared Dividend Hikes Amid Volatility
Economic data released this week doesn't paint a rosy picture, raising concerns over the economy slipping into a recession in the coming months. Although President Donald Trump temporarily paused reciprocal tariffs last month, which helped markets rebound from their earlier lows, Wall Street remains volatile. Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are Atkore Inc. ATKR, Enact Holdings, Inc. ACT, Pool Corporation POOL and American Water Works Company, Inc. AWK. The Commerce Department said earlier this week that the U.S. economy contracted in the first quarter of 2025. Gross domestic product (GDP) fell 0.3% in the first three months of the year, recording the first quarter of negative growth since the first quarter of 2022, and missing analysts' expectations of 0.4% growth. This came as fears grew that Trump's tariffs could weigh on the economy's health. Trump temporarily paused tariffs for 90 days, which saw a sharp rise in imports in the final month of the first quarter as consumers bought imported goods at a higher rate. Imports jumped 41.3% for the quarter, while exports grew just 1.8%. Consumer spending also slowed as people saved more, anticipating tougher days ahead. Besides, there was also a significant decline in federal expenditures, which played a major role in the sluggish GDP figures. Investors are worried that the economy could shrink further once the tariffs go into effect. Consumer confidence fell 7.9 points to 86 in April to hit a five-year low. Needless to say, investors aren't confident about the economy and with the picture on trade negotiations still unclear, markets could remain volatile for a longer period. Given the uncertainty, it would be a wise decision to invest in stocks that pay dividends. These companies usually remain stable and consistently pay out dividends while sustaining profitability through strong business strategies. In a fluctuating market, companies that pay high dividends often outperform those that do not. Atkore Inc. manufactures and distributes electrical raceway products. It offers steel tubes and pipes, electrical conduit, armored wire and cable, cable trays, metal framing systems and building components. Atkore has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. On April 30, Atkore announced that its shareholders would receive a dividend of $0.33 a share on May 28. ATKR has a dividend yield of 2%. Over the past five years, Atkore has increased its dividend once, and its payout ratio presently sits at 12% of earnings. Check Atkore's dividend history here. Enact Holdings, Inc. operates principally through its wholly owned subsidiary Genworth Mortgage Insurance Corporation, which provides U.S. private mortgage insurance. Enact Holdings has a Zacks Rank #3. On April 30, Enact Holdings declared that its shareholders would receive a dividend of $0.21 a share on June 11. ACT has a dividend yield of 2.07%. Over the past five years, Enact Holdings has increased its dividend six times, and its payout ratio presently sits at 16% of earnings. Check Enact Holdings' dividend history here. Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, POOL is a leading regional wholesale distributor of irrigation and landscape products. Pool Corporation carries a Zacks Rank #3. On April 30, Pool Corporation announced that its shareholders would receive a dividend of $1.25 a share on May 29. POOL has a dividend yield of 1.64%. Over the past five years, Pool Corporation has increased its dividend six times, and its payout ratio presently sits at 46% of earnings. Check Pool Corporation's dividend history here. American Water Works Company, Inc. provides essential water services to more than 14 million customers in 24 states and has an employee strength of 6,700. AWK also acquires small water service providers to expand its customer base. American Water Works carries a Zacks Rank #2 (Buy). On April 30, American Water Works declared that its shareholders would receive a dividend of $0.83 a share on June 3. AWK has a dividend yield of 2.08%. Over the past five years, American Water Works has increased its dividend six times, and its payout ratio presently sits at 57% of earnings. Check American Water Works' dividend history here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pool Corporation (POOL) : Free Stock Analysis Report American Water Works Company, Inc. (AWK) : Free Stock Analysis Report Enact Holdings, Inc. (ACT) : Free Stock Analysis Report Atkore Inc. (ATKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
30-04-2025
- Business
- San Francisco Chronicle
American Water Works: Q1 Earnings Snapshot
CAMDEN, N.J. (AP) — CAMDEN, N.J. (AP) — American Water Works (AWK) on Wednesday reported first-quarter profit of $205 million. On a per-share basis, the Camden, New Jersey-based company said it had net income of $1.05. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.04 per share. The water utility posted revenue of $1.14 billion in the period, also surpassing Street forecasts. Three analysts surveyed by Zacks expected $1.03 billion. American Water Works expects full-year earnings to be $5.65 to $5.75 per share. American Water Works shares have risen 18% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $147.01, an increase of 20% in the last 12 months. _____
