12 Ways to Invest in Water That Won't Leave You High and Dry

Inflation or not, people need water. And it needs to be clean and then cleaned again. We're going to have to get it somewhere, and this, the ultimate recyclable, also underlies an investing sector that can make for some profitable buys, especially now when so many stocks are beaten down.

Whether or not they're a hot buy as summer heats up and drought deepens in so many areas across the country is something you'll need to decide yourself, but here are a dozen ways to invest in water that most likely won't leave you high and dry.

5 Stocks Under $49
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We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

American States Water (NYSE: AWR) serves more than a million people in nine states through its subsidiaries, including about 263,000 customers of Golden State Water Company.

San Dimas, California-based American States Water has paid dividends to shareholders every year since 1931 and has raised its payout each year for 68 years, making it a Dividend King. This stock is currently yielding about 1.9% at a price of around $79 a share, which is down approximately 23% so far in 2022.

ALSO READ: Dividend Kings of 2022

American Water Works (NYSE: AWK) has been pumping it out since 1886 and now provides water and wastewater services to some 3.4 million residential, commercial, and industrial customers in about 1,700 communities in 14 states.

Shares in the Camden, New Jersey, company are currently selling for about $148, off about 21% for the year and yielding about 1.7% after 14 straight years of dividend increases.

A. O. Smith (NYSE: AOS) is the largest manufacturer of water heaters and boilers on the continent and serves a worldwide market with its water treatment products and 24 locations in North America, Asia, and Europe.

This Milwaukee-based multinational is a Dividend Aristocrat, with 30 years of increases that have its stock yielding about 1.9% at a share price of around $58, which is down about 32% year to date.

ALSO READ: S&P 500's Best Dividend Aristocrats

California Water Service Group (NYSE: CWT) provides water and related services through subsidiaries in Washington, New Mexico, Hawaii, Texas, and of course California, where it's based in San Jose and has about 500,000 customers.

This company's stock has shed about 25% of its value this year but is still yielding about 1.9% at a share price of about $54, and it's raised its dividend for 54 straight years.

Essential Utilities (NYSE: WTRG) is a suburban Philadelphia-based operator of regulated utilities that provide water, wastewater, and fire protection services to about 7.5 million customers under the Aqua and Peoples brands in Pennsylvania, Ohio, West Virginia, Virginia, New Jersey, Indiana, Illinois, North Carolina, Kentucky, and Texas. After 31 straight years of dividend increases, Essential Utilities stock is yielding about 2.35% at a share price of about $46, down approximately 15% so far in 2022.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Sophisticated investors might want to consider the futures market in water. Late last year, the Chicago Mercantile Exchange launched the Nasdaq Veles California Water Index Futures, touted as the first of its kind to let investors stake some cash on the moving prices of water entitlement trades in drought-stricken and thickly populated California.

ALSO READ: Futures Trading: Everything You Need to Know

Zurn Water Solutions (NYSE: ZWS) designs and sells water system solutions for nonresidential buildings, with a focus on water quality, safety, and conservation. They also make sinks, fountains, and other fixtures for the school and assisted living markets.

Stock in this Milwaukee-based firm is currently trading for about $28 a share, down about 22% for the year, with a drip-drip-drip of a dividend yield of about 0.4%.

The Invesco S&P Global Water Index ETF (NYSEMKT: CGW) is an exchange-traded fund (ETF) that tracks the S&P Global Water Index. This ETF invests in securities issued by water utilities and infrastructure equipment and other materials. Its shares are currently selling for about $46, down about 24% for the year and yielding about 2%.

ALSO READ: How to Invest in ETFs for Beginners

Xylem (NYSE: XYL) is an infrastructure specialist, with a broad lineup of engineered products and solutions for water and wastewater treatment and transportation it sells around the world.

Xylem stock is selling for about $80 a share, down about 33% for the year, and is yielding about 1.5% after the Rye Brook, New York, company has raised its dividend for 12 straight years.

Artesian Resources (NASDAQ: ARTNA) has been in business for 117 years and now provides water and wastewater services to about 92,000 residential, commercial, industrial, and government customers in its home state of Delaware, along with a handful in Maryland and Pennsylvania.

Artesian Resources stock is selling for about $47 a share and is only down about 1.4% for the year with a dividend yield at around 2.35%.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

York Water (NASDAQ: YORW) has the distinction of being the oldest investor-owned water utility in the country. Dating back to 1816, this venerable operator serves customers in 51 municipalities -- including its headquarters city of York -- in three south central Pennsylvania counties.

York Water stock is currently providing a dividend payout of about 1.9% based on a share price of about $40 that's off about 19% so far this year.

ALSO READ: Investing in Water Stocks

Consolidated Water (NASDAQ: CWCO) designs and operates water production and wastewater treatment plants in the United States, Bahamas, and the Cayman Islands, this 49-year-old company's home base.

Consolidated Water also quite notably is involved in desalination: making potable water out of seawater. Also quite notable: Its stock is up about 36% year to date, while the greater market is tanking. You can jump in for about $14.50 a share and immediately enjoy a dividend yield of about 2.4%.

While, with one exception, these stocks are down with the rest of the market, they're in such an ultimately essential business of either directly providing water as a utility or serving that industry in various ways that some timely investing in some of them is not likely to leave you high and dry over the long haul.

Marc Rapport has no position in any of the stocks mentioned. The Motley Fool recommends A. O. Smith. The Motley Fool has a disclosure policy.