One of our favorite dividend stocks is "on sale" today. But hurry – this dip won't last…
We're talking about Pentair Plc. (NYSE: PNR), a 50-year-old global manufacturer of water and fluid solutions, valves and controls, equipment protection, and thermal management products – among many other devices.
Pentair made our list of top 15 dividend aristocrats for 2017 back in June, and for good reason.
Dividend aristocrats are firms on the S&P 500 that have increased their annual dividend for a minimum of 25 consecutive years. Pentair has 40 straight years of dividend growth under its belt.
We like Pentair not only because its shareholders have enjoyed remarkably consistent dividend growth, but also strong growth, at 8.9% a year.
Right now, PNR is trading at $69.41 – roughly 2.5% lower than its recent high of $71.17.
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And analysts are expecting the stock to soon reach $77, according to Dispatch Tribunal.
The company is about to separate into two independent companies by the second quarter of 2018 in an effort to "improve utilization, lower costs, and maximize customer uptime," according to Beth Wozniak, CEO of the new venture.
The existing water business will retain the Pentair name and ticker, while the new electrical business, nVent, will be created in a tax-free spin-off.
That means now – not later – is the perfect time to accumulate shares in PNR.
That way, you'll get shares of nVent as well when the spin-off happens.
And both companies are about to become indispensable.
The United States is long overdue for an infrastructure overhaul. Oxford Economics recently estimated that, between now and 2020, the United States will need to invest $80 to $100 billion into new infrastructure. And between 2015 and 2045, the federal government estimates that an additional $926 billion in currently unplanned transportation infrastructure investment will be needed.
Meanwhile, America's water infrastructure is due for a serious upgrade, with almost $400 billion needed by 2030 to ensure Americans have access to clean, potable, and dependable water.
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Stocks like Pentair are a great way to accumulate long-term wealth.
But Money Morning Chief Investment Strategist Keith Fitz-Gerald has been researching even more aggressive income potential.
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