Some members of the American Stock Market think that investing in water will have very lucrative benefits in the near future.
Stocks in American water companies are already paying nice little dividends to their investors and can only continue to rise as water becomes scarcer.
Jeff Siegel of Alt Energy Stocks writes a thought-provoking post on the massive benefits of investing in water in the USA:
“Of course, there is any number of ways to play water. Infrastructure, wastewater services, and water reclamation are just a few. And all of these water-related industries have a lot of potentials.
However, you’re probably not going to get stinking rich with water stocks.
Over the long term, water is a solid play, particularly if you can collect a nice dividend. But these are definitely not the types of stocks you want to jump in and out of, at least if you need a little stability in your life.
No, these are the long-term investments that, over time, will prove to be more valuable than gold, oil, and smartphones.
Because, well, none of that other stuff matters if you don’t have clean water to drink.”
With all the privatization of water utilities looming on the horizon, Jeff’s advice is certainly food for thought.
Inframanage.com notes that it is interesting that some members of the investment community, like Jeff Siegel, can see and promote water utilities as a solid long-term investment, while often our politicians and our communities seem to take a lot more convincing.
It seems that some of this depend on whether you look at expenditure on water utility infrastructure as a cost or an investment.
If it is just a cost then, of course, there will be a desire to defer or lower the cost as much as possible.
If it is an investment, then you want to invest the right amount, in the right places, at the right time to maximize the return on your investment.
How do you view your infrastructure expenditure – cost or investment?
If you view it as a cost, then your infrastructure asset management planning and budgets are also costs to be dealt with.
If you view it as an investment, then your infrastructure management planning and budgets are an investment prospectus, outlining your planned investment, and your planned return on investment.
Which we think the latter is something worth considering.
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