Dividend.com has added an industrial manufacturer to the Best Dividend Stocks List and removed a leading healthcare firm from the list.
Diversification of assets t’s one of the few ways to reduce risk and help a company get through the rough patches. After all, when one of your businesses is suffering, another one can pick up the slack. The combination of various assets creates a smoother return and overall steadier profits. Given the global economy’s current state of affairs, diversification of business lines will be a real win for those firms that offer it.
And it just so happens, our latest Best Dividend Stocks List pick in the industrial sector offers it in spades.
Our new stock selection makes everything from those plastic six-pack rings around sodas and commercial ovens to specialty parts for wind turbines, bridges and even the chips now found on credit/debit cards. The fact that it serves a diverse range of industries – from energy producers to the healthcare sector – has helped our pick weather a lot of storms. There’s a good chance you’ve interacted with something made by our new pick every day of your life. More importantly, this diversification of assets has made our new pick one of the best dividend stocks around. This includes a recent 7% increase to its payout.
And our new pick continues to see growth.
Our pick has smartly used M&A to grow its existing businesses and continue to focus on its own processes to improve margins. Already, our pick has some of the largest margins in its respective businesses lines versus rivals. But with continued technology improvements and automation, our selection has driven its profits margins even higher. This will help it weather the storm even better going forward.
With our new pick, you’re simply getting a diverse manufacturing base with a huge margin of safety when compared to many of its rivals. Not many other firms can touch its scale and operating metrics.
To summarize, here are five reasons why you should own this stock:
1. Global diversified manufacturer covering a wide range of high- and low-tech products across various sectors.
2. Pulled in nearly $15 billion in revenues last year and managed to see a 15% jump in EPS from those sales.
3. Has smartly used technology and M&A to grow its existing business lines and improve profit margins.
4. Grown its quarterly payout by nearly 280% since the beginning of 2008.
5. Healthy payout ratio of 56% and healthy yield of 2.49%.
