Watts Water Technologies: Strong Cash, Stronger Dividends
Stable profitability and a fortress balance sheet fuel Watts Water’s 17.8% dividend CAGR.
Watts Water Technologies (NYSE: WTS) is a high-quality U.S. industrial company combining strong fundamentals with consistent and accelerating dividend growth. With 13 consecutive annual dividend increases and a five-year average growth rate of 17.8%, Watts stands out as a reliable dividend compounder. We added WTS 0.00%↑ to our Dividend Hike Portfolio early May and have since made a 14.6% return on this investment.
🔑 Key Points
Watts Water has raised its dividend for 13 consecutive years, averaging 17.8% annual growth over the past five years.
The company ended 2024 with a $186 million net cash position and maintains high ROIC (18–21%) and EBIT margins (18–19%).
Shares trade near all-time highs at $240, with a 2025 P/E of 26 and a YTD gain of 18.5%.
The company ended 2024 with a net cash position of $186 million, giving it a rare debt-free balance sheet. Despite trading near all-time highs around $240, the stock remains moderately valued with a 2025 forward P/E of 26. Backed by long-term trends in water efficiency, energy conservation, and infrastructure resilience, Watts continues to deliver rising shareholder value—making it a strong candidate for any dividend growth portfolio.
Watts Water Technologies, Inc. WTS 0.00%↑ is a global provider of flow control, water safety, water filtration & treatment, drainage, and PEX plumbing products. Founded in 1874, the company designs, manufactures, and sells solutions that help manage and conserve the flow of fluids and energy in commercial and residential buildings.
Portfolio Overview
Flow Control & Protection: including backflow preventers, water pressure regulators, temperature & pressure relief valves, thermostatic mixing valves, and leak detection systems.
HVAC & Gas: commercial high-efficiency boilers, water heaters, custom hot water solutions, hydronic and electric heating systems, hydronic pump groups, and flexible stainless‑steel connectors.
Drainage & Water Reuse: drainage products and engineered rainwater harvesting solutions.
Water Quality: point-of-use and point-of-entry water filtration, monitoring, conditioning, and scale prevention systems.
Market Position and Growth Outlook
Watts operates in global building and infrastructure markets, aligned with structural trends in water efficiency, safety, energy conservation, and sustainability. The company’s diversified offering across four product categories provides consistent exposure to both renovation and new-build demand.
In fiscal 2024, revenue grew by 9.5% to $2.25 billion. Looking ahead, analysts expect a slower growth trajectory with average annual revenue increases of around 3%.