Eaton: Powering Your Portfolio With Dividend Growth

dividend growth investing | stock analysis | minimum acceptable rate of return

As recession worries creep higher, the industrial sector has sold off with (XLI) declining nearly 12% over the last 3 months compared to SPY's 4.6% decline.  Eaton (ETN) hasn't escaped the damage with a 6.8% decline of its own.

Eaton is a power management company providing productivity and efficiency controls and solutions for businesses around the world.  Their 108 years of expertise as well as their focus on quality has made Eaton one of the leaders in mission-critical processes.  Eaton is organized into 5 operating segments: electrical, hydraulics, aerospace, vehicle and eMobility (electric automotives).

Dividend History

The investment method that made the most sense to me was dividend growth investing.  In short, the strategy involves investing in high quality companies with a history of paying and growing their dividends which you believe will continue to do so in the future.  Dividend growth investing resonated with me because you can eat the apples from the tree every year, but only harvest the wood once.

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