Ladenburg Thalmann Publishes 3Q11 Water Utility Preview

Ladenburg Thalmann has published a research report on water utilities, stating, “Water utility dividend yields exhibit a strong historical correlation with U.S. Treasury and Utility Bond Yields. In the wake of the global financial crisis this relationship has deteriorated, however, with water utility dividend yields not tracking the extraordinary decline in sovereign and utility bond yields in recent years. This summer's market volatility exacerbated the situation, with water utility dividend yields now 160 bps above 10-year U.S. Treasuries, a spread more than 3 standard deviations above the historical average of an 89 bps utility dividend yield discount to U.S. Treasuries”.

Companies Included in the Ladenbburg Thalmann report are: American States Water (NYSE: AWR), California Water (NYSE: CWT), SJW Corp. (NYSE: SJW).