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Automotive plant employee

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Industrial Firm With 50+ Years of Dividend Growth Reaffirms Position on Best Dividend Stocks List

Aaron Levitt Feb 26, 2020


Businesses thrive on their margins. You can pull in all the revenues you want, but if your margins are low then profits will be nonexistent. For many sectors of the market, this is true. In the industrial space – with its high CAPEX, materials and other costs – margins are often slim to none. Which is why our pick in the industrial sector is such a wonderful stock for investors.

Thanks to its diverse product base and focus on key customers, our pick continues to have some of the juiciest margins of any sector – let alone its industrial rivals. In fact, our industrial pick has margins that are comparable to many software and technology firms.

This has allowed our pick to be a powerhouse dividend payer throughout its long history. The best part is that our pick is just getting started.

Check out our original pick here.

Our pick has smartly used M&A to grow its existing businesses and continue to focus on its own processes to improve margins. Continued technology upgrades and automation improvements have managed to drive up margins even further. But what’s really driving growth is the firm’s new business plan. Focusing on its top customers who already drive its revenues, our pick has started to custom design solutions to meet these customers’ needs. This not only improves margins further, but it locks them into our pick’s system for the long haul, which drives further revenues down the road.

In the end, it creates a high volume of cash flows that our pick is more than happy to hand back to investors as big dividends as well as expanded buyback programs.

To summarize, here are five reasons why you should own this stock:

1. Global diversified manufacturer covering a wide range of high- and low-tech products across various sectors.
2. Pulled in over $14 billion in revenues last year and managed to see a 2.5% jump in EPS from those sales.
3. Has smartly used technology and M&A to grow its existing business lines and improve profit margins.
4. Raised its annual dividend payout by over 15% last year as cash flows/margins improved.
5. Healthy payout ratio of 54% and yield of 2.34%.

Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary rating system. Go Premium to find out the entire list.

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