Revealed on January fifth, 2026 by Bob Ciura
The Dividend Kings are a choose group of 57 shares which have elevated their dividends for not less than 50 consecutive years. We consider the Dividend Kings are among the many highest-quality dividend development shares to purchase and maintain for the long run.
With this in thoughts, we created a full checklist of all 57 Dividend Kings.
You may obtain the total checklist, together with vital monetary metrics akin to dividend yields and price-to-earnings ratios, by clicking on the hyperlink under:
Every year, we individually assessment all of the Dividend Kings. The latest member of the Dividend Kings checklist is Pentair plc (PNR), which lately elevated its dividend for the fiftieth consecutive yr.
This text will present a extra detailed evaluation of the corporate.
Enterprise Overview
Progress Prospects
Between 2008 and 2017 (earlier than the nVent spin-off) Pentair grew its earnings-per-share by 6% yearly, so underlying enterprise development has been strong. Following the spin-off of nVent after 2018, Pentair has additionally grown its earnings-per-share reliably and at a compelling tempo.
Pentair’s administration believes {that a} long-term earnings-per-share development price of 10% is feasible, however we’re a bit extra conservative. It’s, we consider, sensible to count on a ~7% earnings-per-share development price from Pentair over the approaching years.
The corporate ought to have the ability to obtain this development primarily attributable to rising revenues, which can be potential due to natural enterprise development within the international water know-how and infrastructure market, and tuck-in acquisitions, which Pentair makes once in a while.
Tailwinds from margin enlargement and share repurchases, which is able to result in additional declines in Pentair’s share rely, will assist as effectively.
Aggressive Benefits & Recession Efficiency
Above-average working effectivity is certainly one of Pentair’s benefits over friends. The corporate employs a method known as the Pentair Built-in Administration System which has allowed its organizational construction to stay lean, and which has allowed the corporate to develop its already robust margins previously.
Pentair is a frontrunner within the markets it targets, and thru tuck-in acquisitions, Pentair can develop its measurement and scale additional.
Earnings-per-share efficiency throughout the Nice Recession is under:
- 2007 earnings-per-share of $2.12
- 2008 earnings-per-share of $2.59 (22% improve)
- 2009 earnings-per-share of $1.17 (55% decline)
- 2010 earnings-per-share of $2.00 (71% improve)
Once we alter for the spin-off of nVent, Pentair’s dividend development monitor document stays intact. The payout ratio isn’t excessive in any respect, which makes us consider that the dividend appears to be like fairly protected.
Even an earnings decline such because the one throughout the Nice Recession would most definitely not lead to a dividend minimize.
Valuation & Anticipated Returns
Utilizing the present share worth of $104 and anticipated earnings-per-share of $4.87 for the yr, PNR inventory trades for a price-to-earnings ratio of 21.4.
Pentair’s valuation has, on common, been within the high-teens vary previously, though Pentair traded at greater than 20x internet revenue at occasions. We do consider that Pentair’s honest worth a number of is eighteen, which is decrease than the present valuation.
Due to this fact, plainly PNR inventory is overvalued. We count on a contracting valuation a number of to scale back annual returns by 3.4% over the following 5 years.
Apart from modifications within the price-to-earnings ratio, future returns can be pushed by earnings development and dividend yields.
We count on 7% annual earnings development over the following 5 years. As well as, PNR inventory has a present dividend yield of 1.0%.
In whole, we mission that PNR inventory will present a complete annual return of 4.6% over the following 5 years.
Closing Ideas
Pentair is a number one pure-play water/fluids firm that ought to have the ability to develop by way of additional tuck-in acquisitions and natural enterprise enlargement.
We consider that Pentair will have the ability to develop its earnings-per-share at a strong tempo in the long term.
With anticipated annual returns within the mid-single-digits, PNR due to this fact is rated a maintain proper now.
Moreover, the next Certain Dividend databases comprise essentially the most dependable dividend growers in our funding universe:
If you happen to’re searching for shares with distinctive dividend traits, contemplate the next Certain Dividend databases:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
