This article was first published July 19, 2019 on Seeking Alpha.
Water utilities have characteristics that are desirable for many dividend growth investors. They often have a monopoly in their service areas limiting competition and giving them a moat. They provide a necessary service that has little risk of technological obsolescence. Water and wastewater service are required for almost all residential and commercial buildings. This combination often leads to slowly growing top and bottom lines that in turn drives long-term dividend growth.