Water Stocks

Water stocks in 2023 as profitable long term investments. We list water stocks from around the world, covering the following sectors: water supply, wastewater treatment, water technology, water infrastructure, seawater desalination, sanitation, water technic, irrigation technology, home soda maker and water entitlements. Water stocks from all countries are taken into account once the respective company is listed on a stock exchange. The profile of each water stock contains comprehensive information about the respective company.

The NASDAQ OMX Global Water Index is designed to track the performance of companies worldwide that are creating products that conserve and purify water for homes, businesses and industries. The Index began on July 27, 2011 at a base value of 1000.00. See NASDAQ OMX Global Water

Why you should consider Water Stocks as part of your long term Investment Strategy – and what are the Risks?

The demand for water is very stable in the long term and is even gradually increasing due to population growth, climate change and changing lifestyles. As an investment, water is therefore much less affected by economic trends than other promising ecological investment themes such as wind or solar energy and hydrogen technology. Water stocks are also characterized by comparatively low volatility in price development, relatively stable and reliable dividend payments, and an often solid underlying business model. In addition, water stocks fulfill the now widespread ESG criteria (Environment, Social, Governance) and are therefore considered by investment funds, pension funds and generally by investors who invest or are allowed to invest exclusively on the basis of these sustainability criteria.

However, water utilities are always exposed to regulatory and political risks, as their business activities and pricing are regulated and controlled by the respective authorities. Similarly, demands for the nationalization of water utilities regularly arise from the political arena. As a result, annual growth rates in terms of sales and profits are limited, especially for water utilities; on the other hand, this makes revenues more predictable. However, shares in water utilities are also interest rate-sensitive shares at the same time. This means that their attractiveness decreases as soon as interest rates on the market rise, as they then appear less attractive compared to safe fixed-income bonds with similar or higher yields. Currently in 2023, water stocks are on average highly valued in some cases due to the promising future prospects. This reduces the price potential in the short to medium term.

Water is by no means the only attractive and promising investment topic that investors with a medium to long-term horizon should consider – as things stand today, however, water stocks should be included in your long-term investing strategy. The reasons for investing in water through the stock exchange are wide-ranging, well-founded and reasonably predictable.. The sole argument in favor of water stocks is the fact that the demand for water and wastewater services shows continuous stability. Most importantly, demand for water is relatively independent of economic conditions and business cycles. Water stocks offer the potential for long-term capital appreciation and stable dividend payments – the two cornerstones of an equity investment.