Parker Hannifin (NYSE:PH) is an industrial conglomerate which operates out of its diversified industrial and aerospace systems segments. Shares climbed 3.10% on June 18.
The stock challenged a 52-week high in late April before dropping off. Does this present an attractive entry point? Let’s find out.
The company released its fiscal 2019 third-quarter results on May 2. Earnings per share reached an all-time quarterly record of $3.14 and sales rose to $3.69 billion. Its aerospace systems segment posted 9% sales growth to $652.1 million as orders increased 2% on a 12-month average basis.
The company reaffirmed its earnings guidance in a range from $11.17 to $11.47 per share. This assumes organic sales growth between 2% and 3%.
Parker Hannifin boasts one of the longest dividend-growth streaks in the U.S. market. It has achieved dividend-growth for 62 consecutive years. The company last announced a 15.8% increase to its quarterly dividend to $0.88 per share. This represents a 2.1% yield.
As far as value is concerned, Parker Hannifin is one of the more attractive dividend kings available on the market today. The stock last boasted a forward P/E of 13.6 which puts it in great value territory relative to industry.
Parker Hannifin dropped into technically oversold territory in late May, but it has since rebounded. Shares had an RSI of 52 as of close on June 18, putting it firmly in neutral territory. Even still, this is an elite dividend pick for investors on the hunt for income this summer.
