Dividend.com added an industrial manufacturing company to its Best Dividend Stocks list and removed a regional bank.
This industrial firm has a wide moat serving multiple industries, including aerospace, transportation, electrical utility/grid and, even, the golf industry. Founded back in 1911 to produce the world’s first internal-gear truck axle, the stock has undergone a series of transformative deals throughout its history. The latest of which has been a cost-savings tax inversion, which has made it one of the world’s largest suppliers of electrical and power equipment.
The company has paid steady or increasing dividends for 33 consecutive years. More importantly, management has rewarded investors by upping its payout a whopping 715% over that time.
Recently, the election of Donald Trump has given new life to the industrial firm. Trump’s policy direction toward two of these stocks’ main markets – aerospace & defense and infrastructure – will provide a catalyst for higher earnings and dividends down the road.
To summarize, here are five reasons why you should own this stock:
- The company has a 33 consecutive-year history of paying steady or increasing dividends.
- Profitable tax-inversion.
- Its huge, diversified moat of products.
- A big winner from President-elect Donald Trump’s policies toward infrastructure and defense.
- Low payout ratio of 54% and high yield of 3.21%.
Soft Removal of a Regional Bank Stock From the Best Dividend Stocks List
We added this regional bank to the Best Dividend Stocks list back in mid-2016. In just over four months, the stock returned more than 30%. Even with that huge return, our DARS Model still favors the underlying stock and gives it high grades. However, if two stocks have the same DARS rating, we remove the stock that has the lower market cap from the list. Our new pick has a market cap that is nearly 10 times the size of our regional bank pick. With our model’s rules in mind, we are removing the stock from the Best Dividend Stocks list.