Water Utility Stocks Introduction:
In my previous post on the merits of investing in water utility stocks, I outlined the case why I thought Aqua America (WTR) was the best way to take advantage of this investment of a lifetime. For my in depth post please CLICK HERE.
In short, you can invest directly into Aqua America through it’s company sponsored Dividend Reinvestment Program (DRIP). This allows you to bypass broker commissions. Not only that, but you can set up your dividends to automatically reinvest at a 5% discount to market. With a stock growth rate of 8.1% and an annualized dividend growth rate of 7.8%, Aqua America truly can’t be passed up.
Water Utility Stocks: My Personal Investing story and Update
On April 23rd, 2014, I opened an account with Computershare, the online servicing company for Aqua’s DRIP program. To get started the account required $500 to open. I also set the account to automatically deduct $100 from my checking account each month for future investing. The first deduction occurred on May 1st, 2014.
Fast forward to today and we are almost at the one year mark. So far I have invested $1300 in 2014, and $200 through February 2015 for a total of $1500.
In the picture of my personal statement below, I just received a dividend of $9.89 that was reinvested. I now have 60.347 shares, which at the time of the statement was worth $1,591.97 at a share price of $26.38. The share price as of the time of this post was $26.75, so the actual value of my holdings is higher at $1614.29. In a little under a year my profit is $114.29 or a solid 7.6%+.
As I settle some outside investing activities with my mobile home expenses and get them leased, I will be upping my monthly contribution rate in the near future.
As you look over my shoulders, you are seeing the beginning of a small snowball on top of the hill. With just a $500 commitment and $100 a month you can get started today. As the years go by, you will be astounded by just how large that snowball will become as it rolls down the hill.
Join me towards this automated path to wealth. Comments and questions welcomed!