Better Buy: Aqua America, Inc. vs. California Water Service Corp

Water utilities Aqua America, Inc. (NYSE: WTR) and California Water Service Group (NYSE: CWT) both have impressive dividend histories. But with roughly similar businesses, Aqua America's dividend growth stands out, and it's why I think it is the better option here.

Water is an incredibly important commodity that we take for granted in the United States. If you doubt that, consider that only around 1% of the water in the world is both drinkable and easily accessible. Although we have ample supplies of potable water in America today, that simple fact helps explain why water utilities like Aqua America and California Water Service have such long-term appeal.    

Add to our biological need for this scarce resource the fact that the U.S. water infrastructure system is in dire need of upgrading. That means that water utilities have plenty of opportunities to invest in their current systems and to acquire new assets from cash-strapped competitors and municipalities that can't (or don't want to) come up with the money needed for improvement.    

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Source: Fool.com