Enjoying predictable regulated returns, the UK's remaining listed water companies have long been a haven for income investors. But as the industry battles an increasingly tough regulatory outlook, accompanied by the resurgent threat of nationalisation, Pennon (PNN) offers a little more than the typical utility. While South West Water remains the group’s backbone, its waste management business, Viridor, has emerged as the engine of growth.
Yield and dividend growth
Water's sector-leading returns
Value of waste management arm
Tougher regulatory regime from 2020
Vague threat of nationalisation