Why Lincoln Electric Is Included in Dividend Channel SAFE 25 List



DividendRank included LECO in Dividend Channel SAFE 25

Lincoln Electric’s (LECO) dividends matter a lot, as they have been consistently increasing since 2010. In a volatile environment where companies are struggling to grow their revenue, LECO has increased its 2015 dividend per share by 21% over 2014. With a dividend of $1.19 per share for 2015, LECO has achieved dividend CAGR (compound annual growth rate) of 16% since 2010.

According to the DividendRank report, Lincoln Electric (LECO) is included in the SAFE 25 list, which signifies a stock with above-rank dividend rank statistics. LECO is a member of the iShares S&P 1500 Index ETF (ITOT) and also a part of the SPDR S&P Dividend ETF (SDY).

LECO pays dividends, which have been consistently increasing. Plus, the company has been rewarding its shareholders through stock repurchases.

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Lincoln Electric’s stock repurchases

Stock repurchases enhance the earnings per share by reducing the number of outstanding shares. For fiscal 2015, Lincoln Electric (LECO) successfully gave back $486 million to its shareholders. It returned profits to shareholders through dividends—up by 19% to $87 million—and share repurchases, which were up by 30% to $399 million.

LECO operates in the industrial machinery and equipment welding industry. Its peers include Danaher (DHR), Illinois Tool Works (ITW), and Stanley Black & Decker (SWK). LECO is also a part of the SPDR S&P 500 Trust ETF (SPY).


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