Given the number of recent split and split ads, you might think the conglomerate model is dying. Truth be told, this is true for many companies. Even with their best intentions, they don’t seem to get it right. But for those companies that do it right, it can be a huge boon to their bottom line. In the case of our last pick in the Best Dividend Protection model portfolio, they’ve been doing it right for more than six decades.
Our pick is a tried and true industrial conglomerate. Its portfolio includes everything from pumps and hydraulic gear to digital imaging equipment and refrigeration products. This combination of business has allowed us to choose to see steady cash flows throughout its history. As a conglomerate, it has been able to keep these earnings stable. If one arm of the business has difficulty operating, the other can take up slack.
Even better, our selection has continued to grow. With new energy-saving products and a focus on electric vehicle charging, our “boring” industrial company has begun to turn into a true growth engine. That should help keep the dividend going for another 66 years.
You can check out Best Dividend Protection Model Portfolio to explore all stocks.