Dividend Kings In Focus: Pentair

Revealed on January fifth, 2026 by Bob Ciura

The Dividend Kings are a choose group of 57 shares which have elevated their dividends for no less than 50 consecutive years. We consider the Dividend Kings are among the many highest-quality dividend progress shares to purchase and maintain for the long run.

With this in thoughts, we created a full record of all 57 Dividend Kings.

You possibly can obtain the complete record, together with essential monetary metrics reminiscent of dividend yields and price-to-earnings ratios, by clicking on the hyperlink beneath:

Annually, we individually evaluation all of the Dividend Kings. The latest member of the Dividend Kings record is Pentair plc (PNR), which lately elevated its dividend for the fiftieth consecutive yr.

This text will present a extra detailed evaluation of the corporate.

Enterprise Overview

Pentair is a pure-play water options firm that operates in 3 segments: Aquatic Programs, Filtration Options, and Move Applied sciences. Pentair was based in 1966.

Pentair reported its third quarter earnings outcomes on October 21. The corporate was in a position to generate income of $1.02 billion throughout the quarter, which was up 3% in comparison with the corporate’s revenues throughout the earlier yr’s quarter. Income that beat estimates barely, by $10 million.

Core gross sales, which exclude the influence of foreign money price actions, acquisitions, and dispossessions, had been up 3% yr over yr as properly, which was higher than the core income progress price throughout the earlier quarter.

Pentair recorded earnings-per-share of $1.24 for the third quarter, which was up by 14% year-over-year. Pentair’s earnings-per-share beat the analyst consensus by $0.06.

Pentair up to date its steering for the present yr throughout the earnings report: For fiscal 2025, Pentair is forecasting earnings-per-share of round $4.87, which signifies a considerable revenue enhance versus 2024.

Progress Prospects

Between 2008 and 2017 (earlier than the nVent spin-off) Pentair grew its earnings-per-share by 6% yearly, so underlying enterprise progress has been strong. Following the spin-off of nVent after 2018, Pentair has additionally grown its earnings-per-share reliably and at a compelling tempo.

Pentair’s administration believes {that a} long-term earnings-per-share progress price of 10% is feasible, however we’re a bit extra conservative. It’s, we consider, real looking to anticipate a ~7% earnings-per-share progress price from Pentair over the approaching years.

The corporate ought to be capable to obtain this progress primarily as a result of rising revenues, which might be potential due to natural enterprise progress within the world water know-how and infrastructure market, and tuck-in acquisitions, which Pentair makes sometimes.

Tailwinds from margin enlargement and share repurchases, which is able to result in additional declines in Pentair’s share rely, will assist as properly.

Aggressive Benefits & Recession Efficiency

Above-average working effectivity is certainly one of Pentair’s benefits over friends. The corporate employs a method referred to as the Pentair Built-in Administration System which has allowed its organizational construction to stay lean, and which has allowed the corporate to develop its already sturdy margins up to now.

Pentair is a frontrunner within the markets it targets, and thru tuck-in acquisitions, Pentair can develop its dimension and scale additional.

Earnings-per-share efficiency throughout the Nice Recession is beneath:

2007 earnings-per-share of $2.12
2008 earnings-per-share of $2.59 (22% enhance)
2009 earnings-per-share of $1.17 (55% decline)
2010 earnings-per-share of $2.00 (71% enhance)

After we alter for the spin-off of nVent, Pentair’s dividend progress monitor document stays intact. The payout ratio is just not excessive in any respect, which makes us consider that the dividend seems fairly protected.

Even an earnings decline such because the one throughout the Nice Recession would most certainly not lead to a dividend lower.

Valuation & Anticipated Returns

Utilizing the present share worth of $104 and anticipated earnings-per-share of $4.87 for the yr, PNR inventory trades for a price-to-earnings ratio of 21.4.

Pentair’s valuation has, on common, been within the high-teens vary up to now, though Pentair traded at greater than 20x internet revenue at instances. We do consider that Pentair’s truthful worth a number of is eighteen, which is decrease than the present valuation.

Subsequently, plainly PNR inventory is overvalued. We anticipate a contracting valuation a number of to scale back annual returns by 3.4% over the subsequent 5 years.

Other than adjustments within the price-to-earnings ratio, future returns might be pushed by earnings progress and dividend yields.

We anticipate 7% annual earnings progress over the subsequent 5 years. As well as, PNR inventory has a present dividend yield of 1.0%.

In complete, we challenge that PNR inventory will present a complete annual return of 4.6% over the subsequent 5 years.

Closing Ideas

Pentair is a number one pure-play water/fluids firm that ought to be capable to develop by way of additional tuck-in acquisitions and natural enterprise enlargement.

We consider that Pentair will be capable to develop its earnings-per-share at a strong tempo in the long term.

With anticipated annual returns within the mid-single-digits, PNR subsequently is rated a maintain proper now.

Moreover, the next Certain Dividend databases include essentially the most dependable dividend growers in our funding universe:

If you happen to’re in search of shares with distinctive dividend traits, take into account the next Certain Dividend databases:

Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to [email protected].

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