Friday, August 7, 2015

Recent Buy - Eaton Corporation plc (ETN)

24th July 2015 I Bought 30 shares of Eaton Corporation plc at $ 62.86 per share plus commission.

Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical components, industrial components, residential products, wiring devices, and structural support systems, as well as single phase power quality, emergency lighting, fire detection, circuit protection, and lighting products. The company’s Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, intrinsically safe explosion-proof instrumentation, utility power distribution products, power reliability equipment, and services. The Hydraulics segment offers a range of power products; controls and sensing products; fluid conveyance products; thermoplastic hoses and tubings, couplings, connectors, and assembly equipment; filtration systems solutions; industrial drum and disc brakes; and golf grips. The Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use.The Vehicle segment designs, manufactures, markets, and supplies drivetrain and powertrain systems, and critical components that reduce emissions and enhance fuel economy, stability, performance, and safety of cars, light trucks, and commercial vehicles. It serves the industrial, institutional, governmental, utility, commercial, residential, and information technology markets; oil and gas, renewable energy, marine, agriculture, construction, mining, forestry, utility, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets; manufacturers of commercial and military aircraft, and related after-market customers; and original equipment manufacturers and aftermarket customers of SUVs, CUVs, passenger cars, and agricultural equipment, as well as heavy-, medium-, and light-duty trucks. The company was founded in 1916 and is based in Dublin, Ireland.

ETN is a Dividend Challenger with an 6 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 16.7, 13.0, 14.4 and 13.8. (Dividend Champions.xls) Eaton Corporation plc currently pays dividends of $0.55 per share normally in March, May, August and November.


ETN's earnings per share has varied a lot and there was a big dip in 2009 and in 2012. The dividend has also grown very comfortable, except for the year 2010, when it remained unchanged.

Ryan on My Dividend Growth is one who recently purchased Eaton and made a good analysis on it. You can read it here.

Details of my purchase:

Some ratings for ETN:

    Yahoo:  Mean Recommendation 2.1, 1y Target Est $72.67
    Reuters: Mean Rating 2.00
    Zacks Rank: 4-Sell
    Morningstar:  (***) 

At today's exchange rate, this purchase 30 shares of ETN will increase €44.80 ($49.17) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9600.00. With purchase price $62.86 plus commission ($5.00) my starting yield on cost is 3.49%.

Click here to see my portfolio.

Full Disclosure: Long ETN

1 comment:

  1. Nice move, DH! So glad to have you as a fellow shareholder. Dividend Growth Investor has been buying right along with us, so we're in good company. I hope you have a nice weekend and thank you for linking to me!