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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.

As a result, water stocks have a nearly recession-proof business model. Such consistency allows many water stocks to pay dividends to shareholders, and raise their dividends each year.

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

American Water Works (AWK)

American Water Works is the largest and most geographically diverse, publicly traded water and wastewater utility company in the United States, as measured by both operating revenues and population served. The company provides drinking water, wastewater, and other related services to over 14 million people in 24 states in the United States.

Its regulated business includes 54,500 miles of pipe, 600 water treatment plants, 190 wastewater facilities, 1200 wells, and 75 dams. The company also provides water and related services to the U.S. government and U.S. military through 18 installations. American Water Works generates around $4.68 billion in annual revenues and based in Camden, New Jersey.

On July 30th, 2025, American Water Works posted its Q2 results for the period ending June 30th, 2025. For the quarter, revenues rose by 11.1% year-over-year to $1.28 billion. The increase in revenues was primarily a result of i) authorized rate increases to recover capital investments across various states and ii) contributions from recent acquisitions and organic customer growth.

EPS came in at $1.48 compared to $1.42 last year. American Water Works now has general rate cases in progress in several jurisdictions, including Kentucky, West Virginia, and California, with new rates recently approved in Missouri and Iowa. For FY2025, management narrowed their guidance to the top half of the range, now expecting EPS between $5.70 and $5.75. They reaffirmed their long-term EPS growth outlook of 7% to 9%.

American Water Works has a highly stable and robust track record both in terms of its profitability and its dividend payments. The company enjoys an extremely resilient business model due to water being a necessity both for residential and industrial usage, as well as a mission-critical asset for the military. As a result, American Water has been able to grow its network and operations with limited risks.

Over the next nine years, the company expects to invest about $41 billion in renewing its infrastructure, achieving operational efficiencies through new technologies, ensuring water quality, and expanding its overall operations. Management continues to expect EPS to grow by about 7%-9% annually over the long term, powered by 8%-9% from rate base growth and 2% from regulated acquisitions.

Regarding the dividend, it has grown annually over the past 17 years, displaying at 5 and 10-year CAGR of 7.3% and 9.5%, respectively. Management intends to grow the dividend between a rate of 7% and 9% annually over the long term.

Pentair (PNR)

Pentair is a pure-play water solutions company that operates in 3 segments: Aquatic Systems, Filtration Solutions, and Flow Technologies. Pentair was founded in 1966.

Pentair reported its second quarter earnings results on July 22. The company was able to generate revenues of $1.1 billion during the quarter, which was up 2% compared to the company’s revenues during the previous year’s quarter, a result that missed estimates slightly, by $20 million. Core sales, which exclude the impact of currency rate movements, acquisitions, and dispossessions, were up 1% year over year, which was better than the core revenue growth rate during the previous quarter.

Pentair recorded earnings-per-share of $1.39 for the second quarter, which was up by more than 20% sequentially. Pentair’s earnings-per-share beat the analyst consensus by $0.05.

Pentair updated its guidance for the current year during the earnings report. For fiscal 2025, Pentair is forecasting earnings-per-share of around $4.80, which indicates a substantial profit increase versus 2024, during which Pentair had earned $4.33 on a per-share basis. 2025 will be a year during which the company will see flat or slightly higher revenues according to management’s guidance.

The company should be able to achieve this growth primarily due to rising revenues, which will be possible thanks to organic business growth in the global water technology and infrastructure market, and tuck-in acquisitions, which Pentair makes from time to time.

PNR has increased its dividend for 49 consecutive years.

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.

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