From 24/7 Wall St. · Chris Lange · · 2m
Industrial Stocks Raise Dividends Amid Market Softness
Three industrial stocks boosted dividends as markets softened, with Lincoln Electric leading in growth and safety.
In brief
Three industrial stocks boosted dividends as markets softened, with Lincoln Electric leading in growth and safety. Lincoln Electric, A.O. Smith, and MSC Industrial Direct raised dividends despite weaker industrial demand, with Lincoln Electric showing the strongest payout safety. Originally reported by 24/7 Wall St..
Dividend Rises in Industrial Stocks
Three industrial companies raised quarterly dividends within days of each other despite softening markets.
Lincoln Electric: Largest Raise and Fastest Growth
Lincoln Electric increased its quarterly dividend to $0.87 from $0.79, payable January 15, 2027.
Dividend Safety for Lincoln Electric
Trailing dividends of $3.12 take 31% of trailing EPS of $10.01, with strong free cash flow growth.
A.O. Smith: Longest Dividend History
A.O. Smith raised its quarterly dividend to $0.38 from $0.36, with a 30-year streak of dividend increases.
MSC Industrial Direct: Highest Yield
MSC Industrial Direct declared a quarterly dividend of $0.89, up from $0.87, with a trailing yield of 2.66%.
Dividend Safety for MSC Industrial Direct
Trailing dividends of $3.48 take 84% of trailing GAAP EPS of $4.14, with tight cash flow coverage.
Bull Case for Lincoln Electric
Lincoln Electric’s sales rose 12.0% in Q2, with adjusted EPS beating estimates and strong demand in Americas and Asia Pacific.
Bull Case for A.O. Smith
A.O. Smith trades at 14 times forward earnings, with North America sales up 5% and boiler sales growing 21%.
Bull Case for MSC Industrial Direct
MSC Industrial Direct’s operating margin widened 170 bps to 10.2%, with net income rising 41.37%.
Risk to Watch for Lincoln Electric
Lincoln Electric’s growth relies on pricing gains, with volumes falling 4.7% in International Welding and 8.2% at Harris Products.
Risk to Watch for A.O. Smith
A.O. Smith’s GAAP EPS fell 15%, China sales dropped 28%, and full-year adjusted EPS guidance narrowed to $3.70 to $3.85.
Risk to Watch for MSC Industrial Direct
MSC Industrial Direct’s stock up 59.2% year to date, with a single slower quarter risking dividend sustainability.
Which Raise Fits Your Income Plan
Lincoln Electric offers fastest dividend growth and widest coverage, A.O. Smith has longest history and cheapest multiple, MSC Industrial Direct pays highest yield with least cushion.
The key point
Lincoln Electric, A.O. Smith, and MSC Industrial Direct raised dividends despite weaker industrial demand, with Lincoln Electric showing the strongest payout safety.
