Dividend.com added a communications equipment company to the Best Dividend Stocks list and removed a healthcare/medical device firm from the list.
While created via a spin-off during 2011, this communications equipment company’s origins date back to 1928 when it pioneered modern mobile communications. Its long history of providing equipment necessary to make the modern world go round has lent itself to a steady base of dividends and cash flows. In its short life as a spin-off, this firm has managed to raise its payout by nearly 115%.
But more exciting times could be ahead for our chosen communications company. These days, the stock has expanded massively into the public safety world and become the go-to name for modern-day emergency response equipment. The firm has also moved into higher margin services and network operations for various municipalities and counties.
This new focus on emergency communications puts the business right into the crosshairs of incoming President Donald Trump and his mission to boost law enforcement and to expand spending in emergency areas.
To summarize, here are five reasons why you should own this stock:
- In its short history of being a stand-alone firm, it has already seen impressive dividend growth.
- Global Giant featuring over 100,000 customers in over 100 countries.
- A huge diversified moat of products and services.
- Big winner from President-elect Donald Trump’s policies toward law enforcement and defense.
- Low payout ratio of 42% and a healthy yield of 2.27%.
Soft Removal of a Medical Device Stock From the Best Dividend Stocks List
We added this medical device stock to the Best Dividend Stocks list back in mid-2016. However, what Donald Trump gives, Donald Trump can take away. His continued comments about drug and healthcare pricing as well as his plans to repeal Obamacare/Affordable Care Act (ACA) have caused many bright stars in the healthcare sector to suffer. Among those is our medical device stock. The company still features strong metrics in our DARS Model, but its relative strength score has suffered. As a result, its new DARS rating pushes it out of our Best Stocks list. However, we remain bullish on the healthcare name.
A few weeks ago, we removed a stock that gave a 40% return in 4 months and added a railroad stock. You can find our complete analysis here.