I have not been very good at updating my blog often when changes occur. I understand a lot of people I read and follow along with are better than I have been at it. I will attempt to be more transparent and shortly after buying something post an explanation.
Even though I have made purchases before this will be my first time posting a recent buy on this blog. On June 13, 2014 I purchased 10 shares of The York Water Company (YORW). The payout ratio is pretty high approaching the 76% area. I did not invest very much into it right now, but feel it is safe for the foreseeable future. I take comfort knowing people in that area of Pennsylvania need water. A rate increase was just put into effect and the water still only cost less than 1 cent per gallon stated by their 2013 annual report. This is a very old company operating in its 199th year and is the oldest known dividend paying company in America paying dividends since the beginning. This purchase will initially add $1.43 per quarter to my dividends. There are a few attractive water utilities that I also like out there, but the length of paying dividends impressed me a lot. The dividend has also been increased for 17 consecutive years. Below is a summary of the company profile from E*Trade’s website.
The York Water Company is engaged in the business of impounding, purifying to meet or exceed safe drinking water standards and distribute water. The Company operates within its franchised territory, which covers 39 municipalities within York County, Pennsylvania and seven municipalities within Adams County, Pennsylvania. The Company is regulated by the Pennsylvania Public Utility Commission, or PPUC, in the areas of billing, payment procedures, dispute processing, terminations, service territory, debt and equity financing and rate setting. Water service is supplied through the Company's own distribution system. This combined watershed area is approximately 117 square miles. As of December 31, 2011, the Company's average daily availability was 35.0 million gallons, and daily consumption was approximately 18.5 million gallons. On December 28, 2011, the Company agreed to purchase the assets of Asbury Pointe Wastewater Collection and Treatment System in York County, Pennsylvania.
What are you buying? Do you prefer another water utility? Do you think this was a good buy or not at this time?