A popular old adage is wrong: You can teach an old dog new tricks, even when that ‘dog’ is nearly 100 years old and has been paying steady dividends for more than 60 years. For our Best Dividend Stocks List pick in the industrial goods sector, this means shedding assets, completing plenty of M&A and focusing more on its main bread-and-butter. This transformation is one of the biggest in our pick’s history and should continue to provide a new avenue for growth and additional dividend payments long into the future.
Not that our firm needs help on that front.
Thanks to its already massive moat size, our firm has long been a dividend stalwart. As a leading distributor of nuts, bolts and other products for the automotive and industrial sectors, our pick’s huge scale gives it a commanding presence. This has driven cash flows for decades, and our pick has been sharing that with investors. In fact, our pick just raised its dividend by 4% at the start of 2020.
See the original article on our pick here.
And its transformation should continue to work wonders as well.
New moves into growing overseas markets as well as supplies for automation/new industrial markets will provide a long runway for growth. It’s here that our pick should continue its winning ways and use its scale to grow even bigger. And thanks to that scale and niche, our pick will continue to be untouchable by online rivals.
In the end, our pick continues to grow and provide plenty of steady cash for investors.
To summarize, here are five reasons why you should own this stock:
1. Huge moat through its distribution network, which sells more than 500,000 different parts across roughly 9,000+ different sales locations.
2. Undergoing a massive transition to move into more lucrative markets and shed underperforming business lines.
3. In its 90+ years of operating history, sales have increased in 86 of those years, while profits have increased in 75 of them. That’s a track record that can’t be beat!
4. Increased dividends for well over six decades.
5. Healthy payout ratio of 52% and growing yield of 3.16%.
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