Industrials We Own

Cindie and I already own shares of BHTG, RSG, WM, TRTN, ETN, NOC, ITW, SCS, EBF, and MMM. Our current total investments in the industrial sector are about $138,000, and that is a fairly small sliver of our total investments. I generally prefer to focus on REITs, technology, healthcare, BDC’s and other financials.

Why I Bought PH

Do you see just a truck, or do you see opportunities?

There are very few industrial stocks that I like. Therefore, our total investment in the industrial sector is somewhat limited. Nevertheless, I watch for opportunities for businesses in this sector that have long-term profit potential, business growth, earnings growth, and dividend growth. I also like to see diversification within a business. I don’t want a business with a one-trick pony. I prefer a stable of stallions. PH fit my requirements, so I bought an opening position today.

Great diversification within a single industrial company.
Another example from Parker-Hannifin’s presentation.

Notice that even one end product, created by another company, can have multiple PH ingredients. This means PH needs to understand their customer and their customer’s needs.

What triggered my interest?

This is one resource I use for ideas: Profits Unlimited

I receive a monthly report from “Profits Unlimited” and sometimes PU also provides special reports. In a recent special report titled “5 Technology Stocks that will Power the Next Industrial Revolution” Parker-Hannifin was mentioned. I decided to dig deeper.

The Dividend Story

The PH dividend story is almost too good to be true. Consider the following images. Notice how long they have been paying increasing dividends. Don’t just focus on yield when you buy an investment. Focus more on growth and the moat of the business.

63 years of dividend growth and an excellent payout ratio.
The chart tells a story.
Growth is seen in the dividend history graph

Full Disclosure

I purchased 50 shares to begin. I plan to buy more shares if the price dips.