Profit From Water With These Dividend Stocks | Investing.com

Water is a scarce resource, and at the same time a precious commodity that is vital to human survival. For investors, this sets up a long-term growth opportunity.

Water stocks have simple business models and are resilient to recessions thanks to the essential nature of their business.

The following 3 stocks all conduct business from water, and have solid dividend yields with annual dividend increases.

Masco Corporation is a world leader in the design, manufacture, and distribution of a wide variety of home improvement and building products. The company’s 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.

On February 10th, 2026, Masco raised its quarterly dividend 3.2% to $0.32. The company has increased its dividend for 13 consecutive years.

That same day, Masco announced fourth quarter and full year earnings results. For the quarter, revenue declined 2.2% to $1.79 billion and missed estimates by $25 million. Adjusted earnings-per-share of $0.82 compared unfavorably to $0.89 in the prior year, but this was $0.03 more than expected.

For the quarter, revenue for the Plumbing Products segment grew 5% to $1.25 billion while Decorative Architectural Products decreased 15% to $545 million. By regions, North America declined 5% while international were up 1%.

Gross margin contracted 80 basis points to 33.9% while the operating margin fell 210 basis points to 13.8%.

For the year, revenue grew 3% to $7.56 billion while adjusted earnings-per-share of $3.96 were down from $4.10 in 2024. The company returned $832 million to shareholders through dividends and stock buybacks during the year as well as announced a new $2.0 billion share repurchase authorization.

Pentair plc is a pure-play water solutions company that operates in 3 segments: Aquatic Systems, Filtration Solutions, and Flow Technologies.

Pentair reported its fourth quarter earnings results on February 3. The company generated revenues of $1.02 billion during the quarter, which was up 5% compared to the company’s revenues during the previous year’s quarter, a result that beat estimates slightly, by $10 million.

Core sales, which exclude the impact of currency rate movements, acquisitions, and dispossessions, were up 4% year over year as well, which was better than the core revenue growth rate during the previous quarter.

Pentair recorded adjusted earnings-per-share of $1.18 for the fourth quarter, which was up by 9% year-over-year. Pentair’s earnings-per-share beat the analyst consensus by $0.02.

For fiscal 2026, Pentair is forecasting earnings-per-share of around $5.33, which indicates a substantial profit increase versus 2025, during which Pentair had earned $4.92 on a per-share basis.

Pentair’s management believes that a long-term earnings-per-share growth rate of 10% is possible. The company should be able to achieve this growth primarily due to rising revenue, due to organic business growth in the global water technology and infrastructure market, and tuck-in acquisitions. Tailwinds from margin expansion and share repurchases, which will lead to further declines in Pentair’s share count, will help as well.

Roper Technologies is a specialized industrial company that manufactures products such as medical and scientific imaging equipment, pumps, and material analysis equipment.

Roper Technologies also develops software solutions for the healthcare, transportation, food, energy, and water industries. The company was founded in 1981, generates around $7.0 billion in annual revenues, and is based in Sarasota, Florida.

On November 5th, 2025, Roper raised its dividend by 10.3% to a quarterly rate of $0.91. The company has increased its dividend for 33 consecutive years.

On January 27th, 2026, Roper posted its Q4 results. Quarterly revenue and adjusted EPS were $2.06 billion and $5.21, up 10% and 8% year-over-year, respectively.

Organic growth was 4%, with acquisitions contributing 5%, reflecting continued strength across Roper’s diversified software and technology portfolio.

During the quarter, the company continued to actively deploy capital, repurchasing $500 million of shares and building on a year in which it invested $3.3 billion in strategic acquisitions including CentralReach and Subsplash, while continuing to advance AI-driven innovation across its businesses.

Management initiated full-year 2026 adjusted EPS guidance of $21.30 to $21.55.

ROP has increased its dividend for 33 consecutive years.

Disclosure: No positions in any stocks mentioned