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Aqua America CEO Nick DeBenedictis on how improvements in the company’s water infrastructure has helped boost growth.
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-- of utilities' profits of being.
Pouring out of water utility company what America for years and nothing is different today shares up about 30% this year.
With a solid dividend yield of about 2.4.
Percent.
They have been about the Benedict this Aqua America chairman CEO of president joining us now and a Fox Business exclusive from Philadelphia -- thank you so much.
It's very -- if you've had.
Yeah dividend increased 22 times in 21 years it was 6%.
Increased last year how long can you keep this growth up.
-- Lewis said today's very good earnings up 37%.
I'm pretty confident will be able to make it 43 purported to the fact that so what's the secret what are you doing to be able to -- so much.
Well we're doing what I think municipality should be doing investing in pipes rebuilding the country's infrastructure.
The fact that this is the best time because interest rates are so low.
And as.
-- -- we just heard.
Investors are rewarding utility stocks right now so as the best time you -- low cost to capital.
To invest in America for the long term.
So as you improve the infrastructure that means rate increases do you get a -- resistance and how successful volume in getting those higher rates.
Well our mechanism and in the water industries using what they call surcharges so it's not it's a little bit of the time which.
Takes away some of the problems within and and issues with resistance to rates our rates are raised a little bit each quarter.
And when people see the value of water.
They -- it we sell order for about a penny a gallon -- get people are willing to pay a dollar applying for that perceived safety of bottled water.
And I think when they see is fixing pipes and fixing our water plants they realize it's the best investment for America.
The company -- next Serbs while about three million and.
Customers across the US is it difficult to get.
A foothold in a country that is so huge.
Well we've been around for a 130 years so I think we call this -- -- -- how we do not trying -- -- with the big European companies.
On their turf -- veolia and Suez but.
We find that we're the second largest for four billion market cap.
And we're very happy and comfortable in our space.
Well you completed eighteen acquisitions growing customers by one point 9% is that a trend do you wanna continue to.
To get more access to have -- customers.
Absolutely actually there's three.
There's that we've done 300 acquisitions over the last forty years of but there's 50000.
Small water companies in the United States this is a very fragmented.
Demographic.
Demographically industry.
And it's one that should have some larger players for economy of scale and proficiency is such an important necessity such as word waste water supply.
When you're doing it very well indeed thank you so much nick kind of get -- us Aqua America for having CEO president from Philadelphia nick thank you appreciate it.
