7 Best Water Stocks for 2023 The Motley Fool

investing in water stock

One of its applications is testing water sources for pollutants and toxins. GE is a stock with a long history of success that has worked hard to revamp itself as energy needs have changed. This stock is for investors willing to be patient while the company redefines itself. In principle, as an investor, you have various possibilities to invest in the water industry — just like in all other industries.

  • For investors who would rather invest in more broadly diversified index funds and ETFs, there are several options.
  • This includes services in engineering, architecture, interior design, environmental sciences, project management, and project economics.
  • In fact, agricultural irrigation accounts for nearly 70% of fresh water consumption.
  • Global Water Resources has only been trading publicly since 2016.
  • The companies it invests in help to conserve and purify water in both homes and businesses.

With emerging technologies like desalination and the harvesting of energy from waves in the ocean, there’s no shortage of new water investments. If you’re not an accredited investor but are looking for a way to invest in productive farmland, then Harvest Returns is great for their lower investment minimum and lower fees. Harvest Returns allows any qualified investor to invest in farms and agribusiness while making passive returns on a quarterly or monthly basis. Harvest Returns is the most accessible way for nearly any investor to gain exposure to productive water-rich farmland. To start trading on the underlying price movements of water stocks, you first need to decide whether you would prefer to spread bet or trade CFDs.

Farmland Partners (Ticker: FPI)

If a brand is a referral partner, we’re paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Sign up to our email list to be informed when Legendary Investors are buying & selling stocks. Another easy way to invest into Water like Michael Burry is to invest into an Index fund of Water stocks, or an ETF (Exchange Traded Fund). Big Short Investor Burry has preferred investing into water rich farmland, which is usually protected from many major government limitations. Pentair reported its fourth quarter earnings results on January 31.

From a value of 20, a country’s water resources are considered to be at risk; from a value of 40, water use is considered to be unsustainable and supply is considered to be at extreme risk. To counteract the water shortage, you can invest in companies that deal with recycling water and water efficiency. There are also various managed funds such as the Pictet Clean Water Fund (soon available in the Cooler Future app!) through which you can profit from water as an investment opportunity. The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages.

  • Signing this bill into law demonstrates the apparent demand for clean water.
  • Danaher Corporation is a globally diversified conglomerate headquartered in Washington, D.C.
  • The company has not sought to grow through acquisitions, but operating income jumped in 2022 due to a water rate increase.
  • Again, it’s impossible to know if water stocks will provide market-beating returns in 2021, and previous results are never indicative of future performance, especially during a pandemic.

So is the Invesco S&P Global Water Index ETF the right investment for you? I’m afraid I can’t answer that question – only you can decide. We often spout off the fact that 70% of the Earth’s surface is covered in water – something we probably all learned in kindergarten. While this is true, freshwater – the kind we care about – actually only represents 2.5% of that amount. This is a perplexing statement because unlike other commodities like oil, cotton, or silver, there is no market to trade water.

Supply of Almonds?

Investing in waters stocks is a way to support the companies trying to solve the looming water crisis and proves to be a good investment. Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

When it comes to bottled water, the market is growing internationally. Demand is rising from China to Mexico, following the spike in U.S. consumer demand. Estimates suggest that from 2010 to 2020, American per-capita consumption of bottled water increased 61%–in fact, the average American drinks approximately 45 gallons of bottled water a year.

investing in water stock

Lindsay Corporation provides water management and road infrastructure services in the United States and internationally. The conflict in Ukraine has caused a disruption in agricultural activity in that region, leading farmers to plant more intensively in North America. On March 30th, Consolidated Water Co. announced its financial results for the year ending December 31, 2022. Fourth Quarter 2022 total revenue rose by 71% to $28.4 million.

Water-Related Funds

In fact, agricultural irrigation accounts for nearly 70% of fresh water consumption. And the energy sector is the second largest consumer of water. According to some estimates, the typical data center uses between three and five million gallons of water every day. The United Nations World Water Development report for 2020 says that the effects of climate change are impacting water resources, leading to water shortages and contamination that affects crops. Currently, 2.2 billion lack access to drinking water that is safely managed. Here’s everything you need to know about this crucial industry, including our suggestions for the top water stocks to buy in the next year.

«That has been a tremendous business for them, and it continues to grow,» says Bruce Kahn, manager of Shelton Sustainable Equity Fund. Irrigation is in high demand due to long-term challenges of climate change, droughts and population growth. Seventy percent of the world’s freshwater is used for agriculture. This statistic drives home why Valmont Industries (VMI) , a maker of farm irrigation equipment, is a water stock to watch. Valmont makes precision irrigation systems that optimize water efficiency and maximize crop yields.

American States Water Company stock opened the day at $86.46 after a previous close of $85.78. American States Water Company is listed on the NYSE, has a trailing 12-month revenue of around USD$544.4 million and employs 811 staff. Essential Utilities stock opened the day at $39.90 after a previous close of $39.57. Essential Utilities is listed on the NYSE, has a trailing 12-month revenue of around USD$2.3 billion and employs 3,187 staff.

B. How has Michael Burry Invested into Water?

Many regions of the world can’t readily access these potable water sources. This is where water companies are working to improve freshwater disbursement throughout the world and capitalize on the demand that exists. We receive compensation from the products and services mentioned in this story, but the opinions are the author’s own. Learn more about how we make money and our editorial policies. To prevent this and to ensure that people continue to have access to clean and sufficient water, many organisations now commit to water treatment and water efficiency.

investing in water stock

Water-themed investments fall under the larger sustainable investing approach, which is based on environmental, social, and governance (ESG) factors. In November 2021, President Biden signed the Infrastructure Investment and Jobs Act, which allots $55 billion for federal drinking water programs and expanding water infrastructure. At least $15 billion of the budget will go toward replacing lead water pipes, resolving (and hopefully preventing) issues similar to those in Flint, Mich.

Is water a good investment?

Overseas, highly publicized incidents in Russia, China, and elsewhere demonstrate that pollution isn’t limited to the West. Of course, fouled water supplies further restrict the amount of fresh water available for human use.

investing in water stock

We selected the following water stocks based on positive analyst coverage, strong business fundamentals, and market visibility. We have assessed the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds tracked as of the end of the third quarter of 2022. The list is arranged according to the number of hedge fund holders in each firm. At the conclusion of The Big Short, it is revealed that Scion Capital founder Michael Burry followed up his successful short trade with investments in water. However, for retail investors, it may be easier to focus on water stocks. One way to benefit from these coming changes is to invest in the stocks of individual water utility companies.

$55 Billion Investment in Clean Water

As the AI market heats up, investors who have a vision for artificial intelligence have the potential to see real returns. Learn about the industry as a whole as well as seven companies that are getting work done with the power of AI. Nine countries hold 60% of the world’s total fresh surface water resources. Not surprisingly these include several of the world’s largest countries, the United States, China, and India.

Expense ratios are provided by Morningstar and are based on information obtained from the ETF’s last audited financial statement. Learn how to put your money behind the growing call for clean and renewable energy. This is one supposed reason for the country’s occupation of the Tibetan plateau – the glacial meltwater from which feeds the Yellow and Yangtze rivers in China, as well as the Brahmaputra and Indus in India. Control of the plateau secures a greater certainty of a steady water supply. To maximize your credit score increase you need to choose the best rent reporter for you. By now, everyone should be aware of the advantages of investing in a passive index fund – namely diversification at a very low cost.

This will largely be due to the fact that water is becoming a scarce resource. But it will also be due to ongoing infrastructure upgrades as well as the emergence of new technology that is helping to improve water quality. WTRG stock is up 40% in the last five years and analysts give the stock an upside of 11%. Shareholders also benefit from the company’s dividend which it has increased for the last 31 years. Many water companies reward shareholders with dividend payments.


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