For those investors looking for a stock that provides a steady divided income, W.W. Grainger is a stock they should consider.
Grainger is a stock with a stable growth pattern, Over the last three-years and five-years its earnings have grown by 17% a year and its sales by 8%.
It is this sort of stable performance that has Grainger to raise its dividend for 37 consecutive years. Only 20 companies in the S&P 500 can match or surpass that claim. After raising the dividend in April, its yield now stands at 1.8%.
Grainger’s sales usually mirror industrial production and employment trends. In the 12 months ended in March, industrial production grew only 1.6% while employment fell 2%. But Grainger’s earnings grew 20% in 2007 and 22% in the first quarter. Sales expanded 9% in 2007 and 7% in Q1.
The company recently reported 13% sales growth for April. A favorable Canadian currency translation and an extra day of sales boosted the April performance.
The Numbers:
Beta: 1.19
fyi Dividend & Yield: 1.60 (1.79%)
Earnings/Share: 5.20
Forward P/E: 15.20
Market Cap: 6.90
BilP/E: 17.20
Return on Equity: 20.58
Total Shares Out: 76.51 Mil
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