Heating, ventilation and air conditioning (HVAC) is an essential part of our everyday lives. It is present in residential buildings, hotels, industrial and office buildings as well as vehicles such as cars, trains, airplanes and ships. Our latest Best Industrial Dividend Stocks List pick is a testament to that!
Our pick is one of the largest distributors of heating, ventilation, air conditioning and refrigeration equipment (HVAC/R) in North America serving more than 120,000 contractors and dealers. The majority of the company’s revenue comes from replacement demand, which tends to be steady, and thereby providing cash flow visibility. It’s important to note that there are nearly 115 million HVAC units installed in the U.S. of which more than 91 million units are 10 years or older. This ensures steady demand as older units tend to be serviced more often.
The company has a strong track record of returning capital to shareholders. It has been paying cash dividends for 40+ consecutive years and has increased dividends for nearly 10 years.
With an aggressive acquisition strategy and a strong balance sheet, investors can look forward to plenty of growth opportunities. Watch for when the stock goes ex-dividend on Friday, July 15 (estimated date).
You can check out the Best Industrial Dividend Stocks List to explore all the stocks.
