Add some splash with water stocks

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California’s drought dramatically showed the value of water, and investors would be wise to add more of it to their portfolio.

Through 2030, $1.3 trillion should be invested annually worldwide in water infrastructure, according to a World Economic Forum report.

“Climate change and aging infrastructure will drive more awareness to water investing over the next 5 years,” says Gerard Sweeney of Boenning & Scattergood, which is an independent investment company. Water companies also look particularly appealing in an aging bull market because of their high dividend yields and low risk, he adds.

American Water Works (NYSE: AWK; Price: $48.82) and Aqua America (NYSE: WTR; Price: $24.01) are two water-utility companies that Sweeney recommends. (Nasdaq analysts concur.) Both continue to implement the latest technology and expand their business, he says.