Saturday, June 14, 2014

Recent Buy

The York Water Company logo

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?



  1. Interesting pick. I never heard of YORW before. Regarding other water utilities I have considered but have not pulled the trigger yet on AWR, WTR or CWT. Currently, I am looking to add other dividend stocks to my portfolio for June. I'm considering adding more AFL, CB, WFC, KRFT, GE or maybe a new position in USB. I guess I'll be deciding which ones I'll invest in within the next week or so. Thanks for sharing your pick!

  2. DivHut,

    WTR looks like maybe the most popular water utility that I was looking at. I also have been following all of them, but not in depth as much as other companies. Of your considerations I own a little bit of GE. All other ones you mention seem like solid picks that will likely do well for you long term. It is aways great to see what others fellow dividend bloggers are considering purchasing.

    Thanks for stopping by!

  3. Hi Dividend Swan,

    It looks like very interesting company, but I've never heard that name before. You mentioned that it is the oldest know dividend paying company in America, wow. I need to get more details about it.

    Thank you for sharing the info.

    Best Regards,

    1. FJ

      Yes, I glanced over them a couple months ago and was impressed at their statements about the longevity of the business and dividends. It has a pretty low starting yield and lower dividend growth then others, but I think their business is a necessity. Its a quiet company I guess that goes about its business everyday. I wish I had even more time to read more and understand from their annual report.

      Thanks for reading!

  4. Nice buy. I've stumbled across YORW in the pass. Just never really paid close attention to it. But I will be taking a deeper look, thanks!

    1. Living At Home,

      Thank you! So far I'm happy to own a piece of the company. The yield is not very high and payout ratio is up there, but it should be fine in my opinion for my portfolio at least with a wide balance of diversified stocks. I love reading the letters the CEO's pf companies write to shareholders in their annual reports.

      Thank you for stopping by!