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Ingersoll-Rand: Good Total Return And A Dividend Growing At 12%

May 07, 2018 12:48 PM ETIngersoll Rand Inc. (IR)AMT, BA, DLR, FCX, HD, JNJ, KHC, BBWI, MO1 Comment
William Stamm profile picture
William Stamm


  • Ingersoll-Rand total return over-performed the DOW average for my 52 month test period by 3.50%, which is good and the company has a solid growing dividend income.
  • Ingersoll-Rand has increased its dividend for eight years in a row and presently has a yield of 2.1 which is a little above average.
  • Ingersoll-Rand three-year forward CAGR of 10% is good and will give you good growth with increased earnings from the infrastructure development.

This article is about Ingersoll-Rand (NYSE:IR) and why it's a buy for the total return investor that also wants some dividend income. Ingersoll-Rand is one of the largest industrial and commercial products and services companies in the world. IR is a cyclical investment for the total return investor who also wants some income.

The stock comprises 4.27% of The Good Business Portfolio, my IRA portfolio of good business companies that are balanced among all styles of investing. The company has steady growth and has cash it uses to increase the dividends each year and add bolt-on companies.

When I scanned the five-year chart, Ingersoll-Rand has a fair chart going up and to the right in a fair slope. In a good economy, IR shines like in years 2016 and 2017. In years 2014 and 2015 IR was consolidating

ChartIR data by YCharts

Fundamentals of Ingersoll-Rand will be reviewed on the following topics below.

  • The Good Business Portfolio Guidelines
  • Total Return and Yearly Dividend
  • Last Quarter's Earnings
  • Company Business
  • Takeaways
  • Recent Portfolio Changes

I use a set of guidelines that I codified over the last few years to review the companies in The Good Business Portfolio (my portfolio) and other companies that I am taking a look at. For a complete set of the guidelines, please see my article " The Good Business Portfolio: Update To Guidelines and July 2016 Performance Review". These guidelines provide me with a balanced portfolio of income, defensive, total return and growing companies that hopefully keeps me ahead of the Dow average.

Good Business Portfolio Guidelines

Ingersoll-Rand International passes 11 of 11 Good Business Portfolio Guideline, a good score (a good score is 10 or 11). These guidelines are only used to filter companies to be considered in the portfolio. Some of the points brought out by the guidelines

This article was written by

William Stamm profile picture
BSEE The Cooper Union, school of engineering 1966. Engineering manager Harris corp. 23 years Software development, Grumman Corp 10 years as project manager.26 years managing my own IRA accounts, in retirement now with a CAGR of 10.98%

Analyst’s Disclosure: I am/we are long BA, JNJ, HD, OHI, MO, IR, DLR, GE, PM, LB, MMM, IR, EOS, TXN, ADP, KHC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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