Printed on January fifth, 2026 by Bob Ciura
The Dividend Kings are a choose group of 57 shares which have elevated their dividends for at the very least 50 consecutive years. We imagine 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 record of all 57 Dividend Kings.
You possibly can obtain the total record, together with essential monetary metrics reminiscent of dividend yields and price-to-earnings ratios, by clicking on the hyperlink beneath:
Annually, we individually overview all of the Dividend Kings. The latest member of the Dividend Kings record is Pentair plc (PNR), which not too long ago elevated its dividend for the fiftieth consecutive yr.
This text will present a extra detailed evaluation of the corporate.
Enterprise Overview
Pentair is a pure-play water options firm that operates in 3 segments: Aquatic Techniques, Filtration Options, and Circulation Applied sciences. Pentair was based in 1966.
Pentair reported its third quarter earnings outcomes on October 21. The corporate was in a position to generate income of $1.02 billion throughout the quarter, which was up 3% in comparison with the corporate’s revenues throughout the earlier yr’s quarter. Income that beat estimates barely, by $10 million.
Core gross sales, which exclude the impression of forex charge actions, acquisitions, and dispossessions, have been up 3% yr over yr as effectively, which was higher than the core income development charge throughout the earlier quarter.
Pentair recorded earnings-per-share of $1.24 for the third quarter, which was up by 14% year-over-year. Pentair’s earnings-per-share beat the analyst consensus by $0.06.
Pentair up to date its steerage for the present yr throughout the earnings report: For fiscal 2025, Pentair is forecasting earnings-per-share of round $4.87, which signifies a considerable revenue enhance versus 2024.
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 stable. 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 charge of 10% is feasible, however we’re a bit extra conservative. It’s, we imagine, practical to anticipate a ~7% earnings-per-share development charge from Pentair over the approaching years.
The corporate ought to be capable of obtain this development primarily because of rising revenues, which can be attainable because of natural enterprise development within the international water know-how and infrastructure market, and tuck-in acquisitions, which Pentair makes every now and then.
Tailwinds from margin growth and share repurchases, which can result in additional declines in Pentair’s share rely, will assist as effectively.
Aggressive Benefits & Recession Efficiency
Above-average working effectivity is one among Pentair’s benefits over friends. The corporate employs a technique 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 sturdy margins prior to now.
Pentair is a pacesetter 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 beneath:
- 2007 earnings-per-share of $2.12
- 2008 earnings-per-share of $2.59 (22% enhance)
- 2009 earnings-per-share of $1.17 (55% decline)
- 2010 earnings-per-share of $2.00 (71% enhance)
Once we modify for the spin-off of nVent, Pentair’s dividend development observe report stays intact. The payout ratio isn’t excessive in any respect, which makes us imagine that the dividend seems fairly protected.
Even an earnings decline such because the one throughout the Nice Recession would more than likely not lead to a dividend lower.
Valuation & Anticipated Returns
Utilizing the present share value 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 prior to now, though Pentair traded at greater than 20x web revenue at occasions. We do imagine 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 anticipate a contracting valuation a number of to cut back annual returns by 3.4% over the subsequent 5 years.
Except for modifications within the price-to-earnings ratio, future returns can be pushed by earnings development and dividend yields.
We anticipate 7% annual earnings development over the subsequent 5 years. As well as, PNR inventory has a present dividend yield of 1.0%.
In complete, we undertaking that PNR inventory will present a complete annual return of 4.6% over the subsequent 5 years.
Closing Ideas
Pentair is a number one pure-play water/fluids firm that ought to be capable of develop via additional tuck-in acquisitions and natural enterprise growth.
We imagine that Pentair will be capable of develop its earnings-per-share at a stable tempo in the long term.
With anticipated annual returns within the mid-single-digits, PNR subsequently is rated a maintain proper now.
Moreover, the next Positive Dividend databases include probably the most dependable dividend growers in our funding universe:
In the event you’re searching for shares with distinctive dividend traits, think about the next Positive Dividend databases:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].
