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Expected Returns in the Water Sector
Fresh water, more than oil, is the ultimate precious resource
for all economies. However the gap between supply and demand
is widening at a breathtaking pace. The U.N. and world leaders
stress the urgent need for a 500 billion Euro capital investment.
Analysis shows that the market capitalization of many water
companies has increased by stunning percentages over the last
decades.
Growth rates are likely to continue.
Performance
of water stocks 5 year summary 2000 - 2004
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Total Return |
|
Annual Return |
| US Water Utility Stocks |
|
+105,8% |
|
15,5% |
| S&P 500 Index TR |
|
-10,9% |
|
2,3% |
| Dow Jones Industrial Average |
|
+3,4% |
|
0,68% |
| NASDAQ Composite Index |
|
-45,5% |
|
-11,42% |
Conclusion: water companies generate generous and stable
returns.
Expected annual returns are :
- Dividend yield of 3-4%
- Average portfolio value increase of 12%+
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