Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Severn Trent: Boring Is Beautiful

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON --Severn Trent (LSE: SVT.L  ) delivered a wholly uneventful report on its first-quarter activities. Water consumption declined as expected. Forecast bad debt expense remained at 2.2% for the year. Expectations for operating expenses and capital expenditure are unchanged.

Perhaps the only surprise was a joint venture with Costain (LSE: COST.L  ) announced in late June, which is expected to take advantage of new government efforts to introduce competition into the country's water market. This new business is targeting high-volume commercial and industrial customers looking for a single provider for operations that may be located around the country.

However, with uncertainty swirling, the type of predictability offered by Severn Trent is just what investors are looking for -- as is the healthy dividend yield, which remains at 4.1%. Severn Trent and its fellow water utilities Pennon Group and United Utilities have seen their shares rise more than 10% since the beginning of the year, far surpassing the FTSE All-Share's 2.2% rise.

The search for certainty was one of the reasons analysts at The Motley Fool named the utility sector one of its Top Sectors for 2012. To learn more as well as to find out the other two sectors they think offer investors superior returns, download the free report today.

"The Motley Fool's Top Sectors for 2012" offers three sectors we think most investors are overlooking, which provides us with the opportunity to find high-quality companies at bargain prices. Download the free report today to find out where we see opportunity.

Further Motley Fool investment opportunities:

Nate Weisshaar does not own any shares discussed above. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1948354, ~/Articles/ArticleHandler.aspx, 10/26/2016 7:43:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes