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Leading Industrial Firm With Nearly 10 Years of Dividend Growth Reaffirms Its Position on Best Dividend Stocks List

Aaron Levitt Jun 17, 2020

One of the benefits of a conglomerate business model is that when one of your units is slowing down another can pick up the slack. This can provide plenty of strong and steady cash flows to power returns and shareholder rewards. Our Best Dividend Stocks List pick in the industrial sector is a prime example of how this model can benefit shareholders.
For years, aerospace engineering and commercial airline parts have driven the stock’s returns. But with the COVID-19 crisis hitting travel, the commercial airlines industry is dead in the water. Luckily, for our pick only about a quarter of its revenues come from aerospace engineering. And it’s using its other businesses to make waves and beat back the changes that the pandemic have brought.
This includes new partnerships in advanced and so-called smart buildings, new software applications as well as a pivot into medical devices/healthcare. All of these new ventures should bear fruit in the upcoming quarters and years ahead.
For investors, this should keep the returns and dividend growth plentiful. In the end, our pick has continued to make the right moves, diversify its businesses and keep the growth going in all sorts of economic environments.
To summarize, here are five reasons why you should own this stock:
1. Globally diversified manufacturer covering a wide range of high- and low-tech products across various sectors.
2. Pulled in over $35 billion in revenues during 2019 and managed to see an 8% CAGR for its EPS over the last five years.
3. Smartly used M&A and spin-offs since the recession to boost profitability and grow revenues.
4. Saw more than 15% jump to free cash flows last year on higher-margined items and products.
5. Strong forward-looking payout ratio of 47% and yield of 2.49%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.

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