California’s brutal drought rages on.
For investors, these kinds of tragedies are a mixed bag, but the fact is that there are huge opportunities out there in the companies focused on drought issues.
From the pipe fitters and leak detection companies to the purification companies and even utilities, some companies are thriving in the face of this unprecedented drought.
Here’s how you can profit from water world stocks…
Funds are on The Ground Floor
Municipal water utilities have a tough road to hoe with water. They’re constrained by local budgets and local needs.
But there are several investor-owned water utilities that have invested in new technologies, storage tanks, and more that make them good investments going forward.
And, as a bonus, many pay a dividend.
For example, the Calvert Global Water Fund (CFWAX), for example, invests in water utilities across the country.
The fund is the largest of its kind, and has invested heavily in water and water-related companies. The fund has $577 million in assets and, of course, pays a dividend.
Calvert’s returns are down a bit this year, but up almost eight percent since its inception in 2008. It has a five-star Morningstar rating, to boot.
Then there’s the AllianzGI Global Water Fund (AWTAX), which aims to invest 80 percent of its assets in the S&P Global Water Index companies.
This one is low risk and fairly stable. The fund has seen 10 percent growth over the last five years, as well.
Let It Go
Unless you’re a hard-core boating enthusiast, one of the great investment opportunities of the next 10 years may have just swam under your nose.
New international regulations require ships to add on-board ballast water treatment systems… and they’re not cheap.
The market for these systems has been about $1 billion, but that’s expected to grow to more than $30 billion in the next 10 years—and there are ways you can profit from it.
Calgon Carbon (CCC) is expected to take it away…
In 2010, the company purchased Hyde Marine, a company that makes ballast water treatment systems.
Though the stock hasn’t been doing well, that’s a bonus for now if you really believe in buying low and selling high.
It’s the only major, publicly traded company that makes these systems – for now, that is.
The Calvert Global Water Fund is a major investor in Calgon.
The No-Brainer: Water Utility Stock
If you want to see growth, take one look at an American Water Works (AWK) chart.
It’s one solid mountain, with its price rising from the low 20s five years ago to nearly $60 today.
Much of that growth comes from its size. The company is the largest publicly traded water firm in the country and its investors have seen an astonishing 150% return over the last 10 years.
Sure, like most utilities, the company is faced with long-term issues of conservation. But, with its size and diversity, it’s poised to be the big fish in the water fund for a long time to come.
TheStreet.com calls AWK a “buy,” and expects the stock to splash into the $65 range soon.
This post originally appeared in mainstreetinvestor.com.
Can “One Number” Consistently Hand You Up to 300% Gains? Beat Wall Street to the stocks they want to buy and consistently profit! Watch this short video now.
More From InvestorPlace
- 6 REITs With Big Yields of 6% or More
- 7 Doomed Stocks That Could DEVASTATE Your Retirement Planning
- The Top 10 S&P 500 Dividend Stocks for October
