Fenofibrate should be taken with a full glass of water for a few reasons. Perhaps most notably is that it eases to process of swallowing and reduces potential esophageal irritation. Many medications are known to cause what esophagitis, fenofibrate included, when they are not taken with enough water, or when individuals lie down soon after taking a dose by mouth.
The exact incidence of esophagitis with fenofibrate isn't known, but has been reported in clinical trials. As stated above, taking your dose of fenofibrate with a full glass of water will help to avoid or reduce the chances of esophagitis occurring.