America’s manufacturing economy has been doing well under Donald Trump’s leadership. There’s no denying that the typically staid and boring industrial-base has recently gotten a shot in the arm. Pro-growth measures such as corporate tax reform and an expanding economy have benefited pretty much every manufacturer.
And that includes our Best Dividend Stock List’s industrial pick. Since adding the stock to our coveted list back in June 2016, investors have continued to realize strong returns and plenty of dividend growth.
See our original article on our pick here.
But investors should get ready for even more. Thanks to future restructuring plans of spinning off and splitting itself into three separate companies, our leading industrial pick still has plenty of growth in its tank. When the split happens, investors will be left with a major diversified manufacturer as well as two dominant leaders in their respective industries.
For investors, this is a perfect case of subtraction leading to plenty of addition – as in the addition of dividends to their portfolios.
To summarize, here are five reasons why you should own this stock:
- Generated more than $4.7 billion in free cash flows this year.
- Produced a 139% five-year total return for shareholders.
- Increased its earnings-per-share by over 50% in the last five years.
- Major spin-off will allow it to focus on more high-growth industries, such as aerospace and the industrial internet of things (IIoT).
- Healthy payout ratio of 42% and growing yield of ~2%.
