The Best Water Stocks to Buy in 2019

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Water is one of life’s necessities, and forward-thinking investors are looking for the best water stocks to buy in 2019.

While Earth is covered with water, just 2.5% of it is fresh water, which is what we need to drink, bathe, cook, and grow food.

best water stocks to buy
To make things even more dire, only 1% of that fresh water is easily accessible.

You see, we are on the brink of a full-blown water crisis.

And that’s why investing in water stocks today could lead to life-changing wealth.

Here’s everything you need to know about this crucial industry, including our top water stock to by in 2019…

Are Water Stocks a Good Investment?

The United Nations World Water Development report for 2018 said that almost 6 billion people are likely to live in areas that suffer water shortages for at least one month a year by 2050.

Water is a precious commodity, and if governments can’t give people access to clean water, they will need to hire corporations to solve the problem.

When you own water stocks, you can make money from solutions that help the world.

And just think about all the problems that need to be solved…

The National Resource Defense Council rates drinking water resources in major cities, such as San Francisco and Atlanta, as “fair to substandard.”

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Back in 2011, the U.S. Environmental Protection Agency released a report on the nation’s drinking water resources and concluded that it would take an investment of $384 billion over two decades to upgrade and modernize the U.S. wastewater and water systems.

Investing in companies trying to solve the looming water crisis is a good investment.

And one financial expert agrees…

Which Water Stocks Is Michael Burry Buying?

In the movie “The Big Short,” Christian Bale portrays Michael Burry, a hedge fund manager who made roughly $1 billion betting against the housing market in 2008.

At the end of the film, an update about Burry’s life says, “Michael Burry is focusing all of his trading on one commodity: water.”

Currently, it’s unknown what, if any, water stocks Burry has purchased.

He could be purchasing water rights or investing in water-rich farmlands.

But the fact that Burry was so successful in his housing market bet gives him credibility that he can recognize a profit opportunity everyone else is missing…

Will Water Stock Prices Go Up in 2019?

No one has a crystal ball, so it’s impossible to know for sure if water stock prices will go up in 2019.

But some water stocks have provided market-beating returns over the last five years (the Dow was up 61.78% during the same time).

  • California Water Service Group (NYSE: CWT): +95.02%
  • Waters Corp. (NYSE: WAT): +97.29%
  • Roper Technologies Inc. (NYSE: ROP): +133.73%

Again, it’s impossible to know if water stocks will provide market-beating returns in 2019, and previous results are never indicative of future performance.

But as we’ve seen over the last five years, buying the right water stocks can lead to massive gains.

And because Canada is considered a freshwater-rich country, our readers have asked if there are Canadian water stocks to buy…

Are There Canadian Water Stocks?

There are Canadian water stocks, but buying them isn’t easy for U.S. investors.

Your broker has to have the ability to purchase shares of a company on international markets.

If they do, this is a list of some of the most well-known Canadian water stocks:

  • Canadian Utilities Ltd. (TSX: CU)
  • H20 Innovation Inc. (TSXV: HEO)
  • BluMetric Environmental Inc. (TSXV: BLM)
  • Pure Technologies (TSV: PUR)

If you can’t access foreign investments, there are fortunately plenty of water stocks traded on major U.S. exchanges.

And yes, some of them do pay a dividend…

Are There Water Stocks with Dividends?

Many water companies reward shareholders with dividend payments.

Five of the most well-known include:

Water Company Ticker Dividend Yield
EcoLab Inc. ECL $1.64 1.04%
Connecticut Water Service Inc. CTWS $1.25 1.79%
Middlesex Water Co. MSEX $0.96 1.94%
American Water Works Co. Inc. AWK $1.82 2.03%
Consolidated Water Co. Ltd. CWCO $0.34 2.71%

Aside from looking for dividends from water stocks, investors want to know more about how recent water stock IPOs have performed.

That’s because IPOs are considered one way to get in on a ground-floor opportunity…

How Have Water Stock IPOs Performed Recently?

Evoqua Water Technologies Corp. (NYSE: AQUA) went public on Nov. 2, 2017, with shares opening at $25.59.

Since then, the stock price has dropped over 50% to $9.34 per share.

Of course, every water company is different.

Other water companies could go public, and the stock price could climb.

But instead of just waiting around for an IPO or trying to figure out what current publicly traded water stocks to buy, we’re taking out all the guesswork for you.

When Money Morning Executive Editor Bill Patalon first recommended this water stock back in 2013, it was trading for $34.53 per share.

Fast-forward to today, and it’s trading for $67.60 per share.

That’s a gain of 95.77% in five years.

Now, you may be saying, “That’s great, but I missed those market-beating gains.”

But if you didn’t buy this top water stock when we first recommended it in 2013, that’s okay.

This water stock’s growth is just getting started, and by getting in right now, you can potentially reap even more market-beating gains in 2019…

The Best Water Stock to Buy in 2019

Xylem Inc. (NYSE: XYL) is the best water stock to own this year. The company is a global player in the water market, across all aspects of the industry.

According to Money Morning Executive Editor Bill Patalon, Xylem is such a great play because it covers every stage of the water cycle with its five “growth sectors” of treatment, dewatering, transport, applied water systems, and analytics.

The company also offers data management, remote monitoring, and cloud-based analytics.

Xylem is based in New York, but it has operations and services that reach across Asia and Europe. On Jan. 30, the company debuted a new service hub and pump rental operation in the Philippines, according to reports from TrenchLessInternational.com.

The Philippines have ongoing issues with tropical cyclones and heavy storms, and Xylem’s new hub will produce the flood-control equipment that is desperately needed throughout the country.

It will also sell dewatering services and pumps for the country’s power-generation infrastructure and mining operations.

And with the international reach that Xylem has, other analysts are just as bullish about Xylem’s future as Patalon…

Janney Montgomery Scott has given XYL a 12-month price target of $92 per share.

From today’s price of $67.60, that would produce a potential gain of 36% for this lucrative water stock.

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