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Consistent, Predictable Dividends in Multi-Industrials

Eaton Corporation is trading at a discount to our fair value estimate.


Joshua Aguilar: Multi-industrial stocks are generally safe havens for investors seeking consistent and predictable dividends. Five multi-industrial stocks have paid an annually increasing dividend for over 60 years. We cover four in 3M, Dover, Emerson Electric, and Parker Hannifin.

There are several reasons for this consistent dividend-paying dynamic. First, most of these so-called dividend aristocrats are broadly diversified in multiple different end markets. So a company may have exposure to weak end markets at any given time, like aerospace and oil gas. They typically also minimize their downside protection by positioning themselves to more-stable end markets.

Joshua Aguilar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.