Parker-Hannifin Corporation (PH) is a strong dividend king with potential for reliable dividend growth.

From Yahoo Finance: 2025-04-06 08:58:00

In today’s market, dividend stocks like Parker-Hannifin Corp. (NYSE:PH) are crucial. The S&P Dividend Aristocrats Index is down 4% since 2025, compared to a 13% decline in the broader market. Dividend growth stocks historically perform better with less volatility, offering reliable options for income investors. Companies with strong dividend growth streaks have delivered an annual average return of over 10% between 1973 and 2024.

Jerome Powell predicts inflation in the US due to sweeping tariffs, creating an uncertain investment landscape. However, dividend stocks have historically protected against inflation, with dividends growing by an average of 5.7% from 1957 to 2023, outpacing inflation at 3.67%. Dividend kings like PH have a 68-year streak and a 13.12% annual dividend growth rate.

Parker-Hannifin Corp. is renowned for its robust dividends and strong cash flow, with a 20% increase in operating cash flow in FY24. The company plans to double its dividend over the next five years, expecting a 50% increase in free cash flow. PH pays a quarterly dividend of $1.63 per share with a 1.26% yield and ranks 3rd on the list of best dividend kings.

Insider Monkey’s hedge fund strategy selects 14 stocks quarterly, outperforming the market by imitating top hedge fund picks. PH offers promising returns but deeply undervalued dividend stocks may hold more potential. For those seeking promising dividends, the hunt for a dirt-cheap dividend stock with double-digit earnings growth may be worthwhile.

Read more: Is Parker-Hannifin Corporation (PH) the Best Dividend King to Buy for Safe Dividend Growth?