Given the number of recent spin-off and split announcements, you would think that the conglomerate model is dying. Truth be told, for many firms this is true. Even with their best intentions, they can’t seem to get it right. But for those firms that do get it right, it can be a huge boon to their bottom lines. In the case of our latest pick in the Best Dividend Protection Stocks Model Portfolio, they’ve been getting it right for over six decades.
Our pick is a tried-and-true industrial conglomerate. Its portfolio spans everything from pumps and hydraulic gear to digital imaging equipment and refrigeration products. This mix of businesses has allowed our pick to see steady cash flows throughout its history. And as a conglomerate, it’s been able to keep those profits stable. If one arm of business has a tough go, another can pick up the slack.
Better still is that our pick has continued to find growth. With new energy-efficient products and a focus on electric vehicle charging, our “boring” industrial firm is starting to become a real growth engine. That should help keep its streak of dividends going for another 66 years.
You can check out the Best Dividend Protection Stocks Model Portfolio to explore all the stocks.
