Dividend Investing Ideas Center
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Infrastructure remains the next phase of the Biden Administration’s lofty goals, and already we’ve seen some pretty impressive spending requests. This includes a $1 trillion bipartisan infrastructure bill as well as the $3.5 trillion Build Back Better Act. President Biden was on the campaign trail recently unveiling the details of the plans, which include plenty of spending on our highways, broadband interest and improving our electrical grid.
It also includes plenty of upgrades to our water system.
For our Best Dividend stocks List pick in the sector, this spending could be a godsend of future profits. Already one of the largest water system operators in the nation, our pick will be able to take advantage of tax breaks, grants and other programs designed to improve its water system. The best part is these upgrades offer a leverage effect for its bottom line.
At the same time, our pick continues to be successful in integrating smaller water systems and bolt-on transactions under its umbrella. With smaller utilities it’s often easier to sell out and be part of a bigger system. And our pick has been a specialist in this area.
The combination of rising infrastructure spending and continued growth via acquisition will drive future profits. It’ll drive cash flows and dividends as well. Our pick is already a leading dividend-growth stock.
To summarize, here are five reasons why you should own this stock:
1. One of the largest water utilities in the nation serving over 47 states!
2. Big winner in the latest push for infrastructure spending, meaning it should benefit from various government programs and grants.
3. Realized a nearly 10%+ increase in EPS last quarter, which is a very strong result considering the ongoing pandemic.
4. Paid a steady dividend since its IPO in 2008, with its latest increase being nearly 10%!
5. Healthy payout ratio of 60% and growing yield of 1.40%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.