The watermark annotation is a text drawn across a document’s page.
To add a Watermark:
In the Annotation pane:
Select Watermark in the drop-down list of Annotation types
Type in the line of Text you want
Use the edition options
Edition options:
Text definition
Text orientation: horizontal or diagonal
Text color (color palette)
Text opacity (transparency scale)
Text size (scale from small to large)

Watermark Edition Interface
Quick selection of color and opacity |
Advanced selection of color and opacity Mac offers a menu of options for defining the colors. |
Default features of a Watermark:
The text is a single line
The text is centered horizontally and vertically on the page
The text font style is predefined
The watermark is added to all the pages of the document. As an option in the Pages Panel, you can hide the watermark from the PDF Export on the pages you have selected. Right-click to open a Context menu, then select the option 'Hide Watermark in PDF Export'.

Notes:
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For more general information on annotation mode, see chapter Using_Annotations.