The 15-minute chart for Middlesex Water has recently exhibited a narrowing of Bollinger Bands, accompanied by a bearish Marubozu at 11:45 on August 18, 2025. This indicates a reduction in the magnitude of stock price fluctuations, suggesting that sellers are currently in control of the market. Furthermore, this bearish momentum is likely to persist.
Water, a fundamental resource essential to life, is also a multibillion-dollar industry. The global demand for water is increasing, driven by factors such as climate change and urbanization. Investing in water stocks can be a strategic move for those looking to capitalize on this growing demand. This article explores seven key water stocks and provides insights into the market dynamics.
Top Seven Water Stocks
1. American Water Works (NYSE:AWK)
American Water Works, the largest water utility stock, provides a stable dividend yield of 2.21% [NUMBER:1]. It benefits from regulated monopolies, allowing it to invest in infrastructure and acquisitions, as seen in its 26 acquisitions in 2022 alone. The company's earnings multiple expanded during the low-interest rate environment, and it has shown resilience in regaining losses in 2024.
2. York Water Company (NASDAQ:YORW)
York Water Company, founded in 1816, is the oldest investor-owned water utility in the U.S. It operates in three counties in south-central Pennsylvania, with a total customer count of 80,000 households as of 2023. The company's revenue increased by 6% in 2022, and it maintains a strong dividend yield of 2.9%.
3. Essential Utilities (NYSE:WTRG)
Essential Utilities, formerly known as Aqua America, serves about 5 million people across 10 states. It entered the natural gas business in 2020, diversifying its revenue streams. The company's revenue rose by 1.6% in 2024, and it offers a dividend yield of 3.6%.
4. American States Water Company (NYSE:AWR)
American States Water Company operates in California, with a majority of its revenue coming from Golden State Water Company. The company's revenue was flat in 2023 but grew by 21% in 2024 due to rate increases. It offers a dividend yield of 2.7%.
5. Middlesex Water Company (NASDAQ:MSEX)
Middlesex Water Company, founded in 1897, operates in New Jersey and Delaware. Its revenue grew by 15% in 2024, and it paid a dividend yield of 2.6%. The company's net income jumped by almost 50% in 2024 due to a rate increase.
6. Xylem (NYSE:XYL)
Xylem is a water technology company that makes products for water transportation and treatment. It operates in three business segments and estimates its total served market to be $60 billion. The company's revenue rose by 16% in 2024, and it offers a dividend yield of 1.1%.
7. Primo Brands Corporation (NYSE:PRMW)
Primo Brands Corporation, the result of two mergers, operates in the beverage industry, focusing on water and healthy hydration. It grew its revenue by 10% in 2023 and offers a unique opportunity as a pure-play water consumption stock.
Market Dynamics
The 15-minute chart for Middlesex Water (NASDAQ:MSEX) recently exhibited a narrowing of Bollinger Bands, accompanied by a bearish Marubozu at 11:45 on August 18, 2025. This indicates a reduction in the magnitude of stock price fluctuations, suggesting that sellers are currently in control of the market. Furthermore, this bearish momentum is likely to persist [Writing Topic].
Conclusion
Investing in water stocks can be a strategic move given the increasing demand for water due to climate change and urbanization. The seven key water stocks discussed—American Water Works, York Water Company, Essential Utilities, American States Water Company, Middlesex Water Company, Xylem, and Primo Brands Corporation—offer different opportunities for investors. However, it is essential to stay informed about market dynamics and technical indicators, such as the Bollinger Bands and Marubozu candlestick pattern, to make informed investment decisions.
References
[1] https://www.fool.com/investing/stock-market/market-sectors/consumer-staples/beverage-stocks/water-stocks/
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