50-year dividend king at reasonable valuation
PNR looks like a buy for dividend growth because it’s a water-treatment “dividend king” with 50 straight years of dividend increases, a low 27.3% payout ratio (headroom), durable margins (ROE ~20.1%, net margin ~14.5%), and PFAS-driven municipal CapEx plus filtration/pool replacement demand supporting mid-to-high single digit dividend growth, with the recent ~20% pullback making valuation (P/E ~18.4) reasonable versus its growth profile.
A 27.3% payout ratio, ~20.1% ROE, and PFAS-driven municipal CapEx create a durable mid-to-high single digit dividend growth case. The recent ~20% pullback brings P/E to ~18.4, making valuation reasonable relative to the water treatment growth profile.
Target $130.006mo
"Time to buy this Dividend King."