Gorman-Rupp (GRC-N)

(A Top Pick June 16/17, Up 24%) Quite happy, still owns it and keeps buying for clients.The biggest industrial maker of pumps. They’ve increased their dividends for 42-43 years. Nobody cared about their products but now are drawing more attention. A play on water as well, which is a market they like.

It has been a disappointment. Largest industrial maker of pumps for the oil patch and municipal water supply, etc. Sales has been OK. 30% of its business is made oversees and that should benefit them with the global economic improvement. Small to medium cap stock. It has raised its dividend every year for the last 43 years. They still like it.

He stills owns it and admits it has been a disappointment. It is the largest manufacturer of industrial pumps. It has increased its dividend for 46 consecutive years. It is a value stock, not a yield stock. Energy prices have hurt the demand for their product. It just reported good earnings and looks cheap. Yield 1.8%.

The world’s largest industrial pump manufacturer. It has raised its dividend every year for over 40 years. What has hurt it is that a lot of exposure is in the energy area. As energy starts to come back it should do better. 30% of earnings are from outside of the US and so it should benefit from changes to US tax policy.

He likes that they carry zero debt. They stick to what they do. The trouble is that earnings today are about the same as what they were 10 years ago. They are well known in their niches, but earnings revenues are relatively flat over a long period of time. The dividend has been rising over time, because they are increasing their dividend payment ratio, not because they are earning more money. Trading at about 25X earnings. For a company which is not growing its earnings in any significant way, is a struggle for him.

The world’s largest manufacturer of industrial pumps. It is the third generation of the family that are running it. It has increased its dividend 44 years in a row. What has held it back in the last couple of years is that they move fluids and some of it is oil and the weakness in that industry has hurt them. That part of the business is starting to improve. Their latest quarter was better than expected. This will be a good long term stock to own.

The largest global manufacturer of industrial pumps. The stock hasn’t gone anywhere for a while, because 30% of their business is outside of the US, and the strong US$ has hurt profitability. A large part of their business is to the energy business such as moving oil, which has hurt them some. Have increased dividends for 44 years in a row. This is an opportunity to buy a company at its historically low valuation. Dividend yield of 1.7%. (Analysts’ price target is $26.)

(A Top Pick Nov 27/15. Up 3.17%.) This has benefited since the Trump rally. An industrial company, and a lot of its business is in the petroleum area. 100% of their business is in pumps. Have raised their dividend every year as long as they have been public. It has had a good run, and could pause here for a while, but he likes it for the long-term.