3 Water Stocks for Safe and Reliable Income

People always need clean water, regardless of the state of the economy. In turn, many top water stocks have regular customer bases and very consistent revenues and earnings. 

This great stability paves the way for water stocks to pay growing dividends to shareholders. 

Many water stocks have very long histories of increasing dividends. This article will discuss 3 top dividend-paying water stocks.

Advanced Drainage Systems (WMS)

Advanced Drainage Systems is a leading manufacturer of innovative storm water and onsite septic wastewater solutions. The company’s products include single, double, and triple-wall corrugated polypropylene and polyethylene pipes, septic tanks and accessories, water-quality filters and separators, PVC hubs, and stainless-steel bands.

The Pipe segment comprised the majority (53.6%) of ADS’ $2.9 billion in total net sales in its fiscal year 2025 ended March 31. The Allied Products & Other segment (additional water management products like storm retention/detention and septic chambers) contributed another 24.4% to the company’s FY 2025 net sales.

The Infiltrator segment (e.g., septic tanks and accessories) contributed 20.5% of ADS’ FY 2025 net sales. Finally, the International segment chipped in the remaining 7.1% of FY 2025 net sales (percentages don’t add up to 100% because of $162.8 million in inter-segment eliminations in FY 2025).

On August 7th, ADS released its fiscal first-quarter earnings report for the period ended June 30th, 2025. The company’s net sales increased by 1.8% year-over-year to $829.9 million during the quarter. ADS’ Pipe segment net sales decreased by 2.8% over the year-ago period to $441.1 million in the quarter.

The International segment’s net sales dropped by 19.3% year-over-year to $49.7 million for the quarter. These declines were more than offset by growth in the Infiltrator and Allied Products & Other segments (+19.3% to $195 million and +1.4% to $191.2 million) during the quarter.

Adjusted diluted EPS decreased by 5.3% over the year-ago period to $1.95 in the quarter. That topped the analyst consensus by $0.19 for the quarter.

Lindsay Corporation (LNN)

Lindsay Corporation provides water management and road infrastructure services in the United States and internationally. The irrigation segment provides irrigation solutions for farmers and contributed 85% of sales in fiscal year 2024, the infrastructure segment helps with road and bridge repairs and contributed the other 15%.

On June 26th, 2025, Lindsay reported its Q3 2025 results for the period ending May 31st, 2025. The business saw diluted earnings-per-share of $1.78 which fell slightly from the $1.85 reported the same quarter of last year.

Analysts had expected a far sharper decline in earnings, however, due to tariffs, so this quarter was a pleasant surprise. Meanwhile, revenues surged 22% year-over-year to $169.5 million. This appears to be an effect of tariffs. Lindsay’s international revenues skyrocketed 60% while U.S. sales dropped 1%.

Lindsay has averaged a payout ratio of 41% over the past 10 years. It is far below that today. We project that the dividend will be safe since the low payout ratio signifies that the dividend is well-covered from earnings.

Even though the business is in a cyclical industry, Lindsay has a very safe balance sheet, with minimal net debt. In addition, the company has remained profitable even during down periods for crop prices which speaks to the firm’s stability.

LNN has increased its dividend for 23 consecutive years.

Masco Corporation (MAS)

Masco Corporation is a world leader in the design, manufacture, and distribution of a wide variety of home improvement and building products. Its leading brands include Behr paint, Hotspring spas, Kichler decorative and outdoor lighting, and Delta faucets, bath, and shower fixtures. Masco also sells branded decorative and functional hardware and waterproofing products.

The company has two reportable segments, including Plumbing Products and Decorative Architectural Products. Masco’s customers include plumbing, heating, and hardware wholesalers as well as hardware stores, home centers, and online retailers.

On February 11th, 2025, Masco raised its quarterly dividend 6.9% to $0.31.

On July 31st, 2025, Masco announced second quarter earnings results for the period ending June 30th, 2025. Revenue decreased 1.9% to $2.05 billion, but this was $60 million more than expected. Adjusted earnings-per-share of $1.30 compared favorably to $1.20 in the prior year and was $0.22 above estimates.

For the quarter, revenue for the Plumbing Products segment grew 5% to $1.31 billion while Decorative Architectural Products declined 12% to $738 million. By regions, North America decreased 3% while international was up 1%.

Gross margin expanded 10 basis points to 37.6% while the operating margin increased 110 basis points to 20.1%. The company repurchased 1.6 million shares during the period at an average price of $63.13.

Masco reinstated its guidance after pulling it previously due to tariffs and macroeconomic uncertainty. 

The company now expects adjusted EPS in a range of $3.90 to $4.10 for the year, down from prior guidance of EPS of $4.20 to $4.45.