The point of a conglomerate is that each of the parts can provide for plenty of profits at different times. Stronger divisions can help provide capital for R&D and cover for weaker ones during certain periods. However, sometimes a conglomerate’s pieces are performing so well that being together is a hindrance to the parent. And that’s just the case for our industrial Best Dividend Stocks List pick.
Over the years, our pick has slimmed down its business lines into three top-performing areas. This has helped drive profits and dividends for decades. These leading operating sectors feature plenty of demand and innovation that will keep the growth coming for the long haul. And it turns out, these divisions are all so good on their own, the conglomerate model doesn’t make sense anymore for our pick.
To that end, our pick is splitting itself up into three different stocks.
See the original article on our pick here.
But investors shouldn’t fret about the spin-offs. In fact, they should be cheering. Our pick’s main focus on the aerospace and infrastructure markets provides plenty of runway for continued growth. New forays into the “connected aerospace” sector and Industrial Internet of Things (IIoT) markets are paying off big time as our pick’s backlog continues to surge. Meanwhile, the spilt will allow for that growth to be fully realized and allow investors to hone in on individual opportunities and the style of income each division will produce.
In the end, our pick and the sum of its parts are worth much, much more.
To summarize, here are five reasons why you should own this stock:
- Has paid cash dividends on its common stock every year since 1936 – growing that payout by more than 500% since 2001!
- Top play in the digital aerospace and Industrial Internet of Things (IIoT) market. Software/services is quickly becoming a big revenue driver.
- Sales for the first quarter of 2019 saw a massive 20% year-over-year jump.
- Pending three-way split will unlock growth and additional income for investors.
- Healthy payout ratio of 41% and growing yield of 2.33%.
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