Spin-offs remain a great way for companies to extract value and rewards for shareholders, but often these spin-offs fall flat. However, that’s not the case with our newest Best Dividend Growth Stocks Model pick. Our pick was already a very successful business and since being let free just two years ago, it’s rewarded shareholders with a whopping 25% increase to its dividend and enacted a buyback plan!
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
Our pick was spun off from a major aerospace concern and focuses its attention on the heating & cooling marketplace. HVAC and environmental control demand continues to rise as both homeowners and commercial property owners look to reduce expenses. Heating & cooling remains some of the biggest costs for consumers, especially as energy prices rise.
The best part is our pick has plenty of growth avenues as well. New smart technology and advanced HVAC devices are being sought out by the retrofit market. And with governments providing ample subsidies and tax savings for purchasers, our pick has continued to see its revenues rise since being spun out. Meanwhile, in the post-COVID world, filtration and clean air products are now seeing rising demand.
All in all, our pick has the best blend of boring and growth attributes to keep investors and its dividend happy.
In order to make room for our new HVAC play, we’ve removed a defense contractor and reduced our holdings in a beer company for a profit.
