Dividend Kings are a small, cozy group of companies that have increased their dividends for 50 years or more. While some routinely grab headlines when they raise their payout, others go relatively unnoticed.

That’s the case with Parker-Hannafin (PH), a maker of motion-control products that move materials, controls, machines, vehicles, and equipment, while also positioning materials during manufacturing. It just announced it was raising its dividend 10%.

Even if you’ve heard of the company, you may not realize its stellar track record. It has raised its payout every year for 69 straight years. There are only four companies with a history of increases for 60 years or more, putting Parker-Hannifin in an even more elite group of dividend royalty.

Navigate Treacherous Waters
The specialty equipment maker just reported fiscal third-quarter earnings that beat Wall Street’s profit forecasts and came up just short of revenue. But it also trimmed its full-year outlook, raising the low-end of its estimate but reducing the top end.

It remains confident in its ability to navigate dicey markets, including those caused by President Trump’s tariffs and says it is on track still to hit its 2029 financial goals. By focusing on niche markets, Parker-Hannifin has been able to rapidly grow profit margins from 18.6% to 24.9% since 2019.

In a Class By Itself
Of more interest to income investors may be its dividend hike. PH increased the payout to $1.80 per share from $1.63 per share, a 10.4% increase. The motion-control specialist has hiked the dividend at a compound annual growth rate of 12% for the past decade and its closer to 14% over the last five years. With a free cash flow payout ratio of just 27%, the dividend is safe and there is plenty of room for further increases.

PH stock is down 4% in 2025, but 10% higher over the last 12 months. With a solid business, a focus on key markets, and a willingness to share profits with shareholders, Parker-Hannifin is a Dividend King worth adding to your portfolio.

— Rich Duprey

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Source: Money Morning