The correlation between commodity price shocks and water stock performance remains low, making investing in water an effective hedge. This trait appeals to risk-averse investors seeking low-volatility equity exposure with consistent dividend policies. It said its research suggested within the next 10 years the island could face "a potential water deficit of 8.6 million litres a day during severe drought" without intervention. Investors said they would inject an initial £5.4bn into the company to shore up its finances and support future investment, but they suggested the cash injection needed to be set against "stretching but achievable and realistic performance targets". The foreign markets push for water technology has driven Veolia Environnement (VEOEY) up 4.3% this quarter. Strong dividends and contract wins make it a compelling play for long-horizon investors. Water demand forecasts remain bullish, reinforcing the case for investing in water.
