Dividend.com added an aerospace and defense company to the Best Dividend Stocks list and removed a real estate company that owns apartment buildings.
This aerospace firm traces its origins back to the 1920s and the beginnings of commercial aviation. Since those humble origins, the firm has expanded outward and become a major conglomerate covering everything from aircraft engines and missile defense systems to elevators, HVAC units, fire/security systems and various other industrial products.
These various businesses have powered this company to more than $56 billion in annual sales and have helped it to constantly grow its dividend since the early 1980s.
More recently, the stock has also received a major boost from Donald Trump, as the President-elect has pledged wide-sweeping defense and infrastructure spending that plays directly into our latest addition’s bottom line and helped it earn a spot on our Best Dividend Stocks list. (The last aerospace & defense firm we added to the list back in June managed to produce an 11% return ahead of the election results. You can find our complete analysis here.)
To summarize, here are 5 reasons why you should own this stock:
- The company has increased its dividend a staggering 1,800%+ since 1980. That doesn’t include the various special and stock dividends it has paid along the way.
- Features a current low payout ratio of 40%, showing the potential for more increases.
- Core government and military customers add to the stability of earnings, while various non-aircraft businesses add diversification in terms of revenue mix.
- Should realize boost from incoming President-elect Donald Trump across a multitude of its business lines – aerospace and infrastructure.
- Continues to trade at a “buyout” premium, as it’s a perpetual target for M&A.
Soft Removal of a Real Estate Stock from the Best Dividend Stocks List
We added this real estate stock to the Best Dividend Stocks list back in June 2016. However, the firm has made some major moves to become much bigger. Investors were not necessarily pleased with the buyout of a larger rival, and since the announcement, shares of the real estate investment trust (REIT) have fallen around 16.5%. With that in mind, its overall DARS rating has slipped to 3.8 versus its previous rating of 3.9, and we have removed it from our Best Dividend Stocks list. That rating, however, is still strong and represents other solid DARS parameters. Overall, Dividend.com remains bullish on the stock.
Our most recent addition to the Best Dividend Stocks list has generated a return of more than 40% in 4 months. Find out which stock it is here.