This Dividend Aristocrat Will Quench Your Thirst for Stability

Pentair (NYSE:PNR) is a Minnesota-based water treatment company with tax residency in the United Kingdom. Still, over 65% of the company’s revenue comes from Canada and the United States. Shares have climbed 12.5% in 2019 as of close on October 29.

The company released its third quarter results on October 23.

Sales were mostly flat year-over-year at $714 million. Earnings per diluted share rose marginally to $0.54 compared to $0.52 in Q3 2018, and operating income was flat at $109 million.

Pentair maintained its 2019 GAAP EPS outlook of $2.09 and an adjusted EPS guidance of roughly $2.35. On a core basis, it expects sales in the fourth quarter to be mostly flat compared to the prior-year.

Shares still boast a consensus forward price-to-earnings ratio of 16.4, according to data from Morningstar. Its stock is currently trading at about the middle of its 52-week range. Pentair looks like a fair value as we move into November.

But we are here for the dividend. Pentair last paid out a regular cash dividend of $0.18 in the third quarter. In December 2018 the board of directors approved a 3% increase to its annual cash dividend to $0.72 from $0.70. This represented the 43rd consecutive year that Pentair has increased its dividend payout.

It is well on its way to becoming a dividend king in the 2020s, and for this reason it needs to be on the radar of income investors.