3 Water Stocks to Invest In

Water Stocks to Invest

Water stocks remain a very solid investment at this point in the economy being alongside some of the best trades to make now. These companies are growing as their services become more in demand, and continued environmental issues are making these companies more profitable. Furthermore, water is obviously a necessity for human life, meaning that their services will always be in demand. This makes the industry essentially recession-proof for Water Stocks to Invest in.

According to the experts at Money Morning, “When you own water stocks, you can invest in and financially benefit from solutions that help the world through the water crisis–and there are many water-related problems that need to be solved.”

With that being said, here’s a look at 3 Water Stocks to Invest.

Essential Utilities/Aqua America

Essentially Utilities – formerly known as Aqua America – is a Pennsylvania based water company that owns water supplies in many states. It is showing solid growth, with its name change occurring after it acquired Peoples Gas, another Pennsylvania utility. This acquisition makes them a more diverse utility than the average water stock and helps to ensure that it can grow in other industries as well. The purchase also points to their obvious ability to grow, and their strong cash position. Their acquisitions are expected to show a 27% growth compared to the previous year. Despite the acquisitions, the company continues to offer a health dividend of around 2%.

American Water Works

American Water Works serves more than fifteen million people in 46 American states, giving the company a huge customer base, constant cash flow, and a diverse array of customers across the nation. This helps to protect against any natural disasters or price fluctuations throughout the country. This leaves them in a strong cash position and makes them a solid investment. Furthermore, like many utilities, American Water Works offers a dividend that yields around 1%, ensuring that investors can not only achieve growth but a limited return on investment from dividends. The company is also growing, adding customers and locations as it makes additional acquisitions in at least eight other states.


Xylem is a different type of water stock than the above two companies, as the company is actively involved in infrastructure and technology, rather than water and wastewater systems. The company’s products are obviously in high demand as countries and private entities look to get as much efficiency as possible out of their recovery assets. According to some articles, they have shown absolutely monstrous growth: The company has grown 221% in the past five years, and 12% in 90 days, as of January 2021. The company’s growth can be attributable to its technology adoption and the fact that its products are in such extremely high demand. They are market leaders in this sector, and that puts their company in an extremely strong position to continue to grow. They are also constantly entering new markets, with new operations expected to open in the Philippines shortly.

Water utilities remain a solid investment. They typically show solid growth, offer a healthy dividend, and can help to protect portfolios against economic downturns.


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