Data shows that if you want to generate alpha and outperform the major indexes, some of the top stocks to buy are companies that practice gender diversity.

Catalyst, the global nonprofit dedicated to building workplaces for women that work, has done exhaustive research into why diversity and inclusion matter. Among its findings:

• Companies pay something of a self-imposed penalty for lack of diversity. That is, those companies that poorly practice gender and ethnic/cultural diversity were 29% less likely to experience profitability above the industry average.
• A study of U.S. companies in the MSCI World Index between 2011 and 2016 found that "companies beginning with at least three women on their boards produced median gains of 10% ROE and 37% Earnings Per Share" over the five-year period. Companies with fewer women on their boards delivered less growth in these two important metrics.
• A 2016 study by Intel and Dalberg Global Development Advisors found that tech companies that practiced diversity had higher revenues, profits, and market value than those that didn't. According to the study, diversity was worth $320 billion-$390 billion in increased market value by closing the gender gap in leadership.

In short, investing in gender-diverse stocks isn't just a moral stance - it's financially rewarding. For investors looking for ways to get in, here are 10 top stocks that show gender diversity counts.

American Water Works

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American Water Works (, $120.55) not only has more women than men on its board of directors, but its CEO (Susan Story) and CFO (Susan Hardwick) are women too, making this utility company a shining