A little known Parker Hannifin peer from Sweden
Industrial company with robust dividend growth, substantial share buybacks, and active M&A strategy
Sweden is home to several globally competitive companies, each excelling in their respective industries. This week, we take a closer look at three outstanding Swedish dividend growth stocks—companies with strong competitive moats, an impressive dividend track record featuring double-digit annual increases, substantial share buybacks, and robust free cash flow.
Our first stock is a true peer to Parker Hannifin, having just announced another double-digit dividend hike for FY 2024. Beyond its strong dividend growth, this company is renowned for its aggressive share repurchase program, buying back 5% of its outstanding shares annually over the past several years.
In this Focus Stock series, we highlight three lesser-known dividend growth gems from Sweden. Today, we introduce #1—a leading industrial company with an $8 billion (SEK 88 billion) market cap, offering a product portfolio similar to Parker Hannifin (PH).
Our new Focus Stock produces aircraft seals, industrial fluid systems, anti-vibration mounts for automotive applications, and oil & gas pipeline protection solutions. It currently boasts a 1.8% dividend yield, with another double-digit dividend increase just announced for 2025. In fact, this company has raised its dividend 14 times in the last 16 years, solidifying its reputation as a consistent wealth creator for shareholders.