3 Water-Company Stocks Making a Splash

Company profile: American Water Works, with a market value of $6.5 billion, is the largest investor-owned water and wastewater utility in the U.S. It provides water, wastewater and other related services to 15 million residential, commercial and industrial customers throughout North America. Nearly 90% of its revenue comes from regulated utility markets.

Dividend Yield: 2.73%

Investor takeaway: Its shares are up 17% this year, including 6.6% in the past month, and have a three-year, average annual return of 26%. Analysts give its shares eight "buy" ratings, two "buy/holds," five "holds," and one "weak hold," according to a survey of analysts by S&P.

For fiscal 2012, analysts' consensus estimate is earnings of $1.95 per share, up 13% from last year. Earnings are expected to grow by 7%, to $2.09 per share, in 2013.

2. American States Water(AWR)

Company profile: American States Water, with a market value of $778 million, serves water customers in California. It also provides electric service to a section of San Bernardino County.

Dividend Yield: 2.7%

Investor takeaway: Its shares are up 18% this year, including 3.4% in the past month, and have a three-year, average annual return of 6.3%. Analysts give its shares two "buy" ratings and five "holds," according to a survey of analysts by S&P.

Analysts' consensus estimate is for earnings of $2.31 per share this year and 5% growth, to $2.42 per share, in 2013.

1. Aqua America(WTR)

Company profile: Aqua America, based in Philadelphia and with a market value of $3.7 billion, serves more than three million customers in 13 states, from Texas to New Jersey.

Dividend Yield: 2.4%

Investor takeaway: Its shares are up 23% this year, including 8% in the past month, and have a three-year, average annual return of 17%. Analysts give its shares five "buy" ratings, one "buy/hold," and seven "holds," according to a survey of analysts by S&P.

S&P says its "buy" rating is "based on our relative valuations, along with (the company's) consistent dividend hikes each year." It adds that its strong balance sheet has translated into low-cost financing to fund capital investment projects. On July 31, the company reported record second-quarterly earnings with net income up 10% to $41.4 million or 30 cents per share year-over-year, with revenue up 11% to $198 million.