3 Boring Dividend Stocks With Customers That Keep Coming Back

Quick Read

• Cintas and Pool Corp. go ex-dividend this week with modest yields of about 1% and 2%, backed by uniforms and pool chemicals customers keep buying.

• Cintas is pursuing UniFirst, but an FTC second-request review and integration of two large route networks pose real risks.

• PACCAR’s record parts revenue and steady financing profits cushion swings in truck demand, and its special dividend flexes with profits.

• Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor)

Three businesses that rarely make headlines all have dividends due this week. Among those going ex-dividend are Cintas (NASDAQ:CTAS) on Nov. 13 at $0.52 per share, Pool Corp. (NASDAQ:POOL) on Nov. 10 at $1.30, and PACCAR (NASDAQ:PCAR) on Nov. 10 at $0.35. The checks are small. Based on annualized forward payouts and recent prices, the yields come to roughly 0.94% for Cintas, 1.37% for PACCAR, and 2.46% for Pool Corp. What makes these companies worth a look is the steady business behind each payment: uniforms, pool chemicals and truck parts that customers keep buying in good years and bad ones.

Cintas Keeps Showing Up With Clean Uniforms Every Week

Cintas rents, launders and delivers work uniforms, then stocks the same customers with floor mats, restroom supplies, first aid kits and fire protection services, and the model runs on routes and contracts, so revenue repeats week after week. Management says it serves 1 million customers out of 16 to 20 million businesses.

——

Now Available: The Definitive Guide to Retirement Income

Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.

That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here ›

——

Restaurants, factories, and clinics need clean uniforms and stocked first aid cabinets no matter what the economy is doing, and the dividend record shows it. Cintas raised its annual payout from $0.46 in February 2008 to $0.47 in February 2009 and $0.48 in February 2010, right through the worst downturn in decades. The annual dividend went from $2.55 in November 2019 to $3.51 in November 2020 during the pandemic year. On the most recent call, CEO Todd Schneider spoke of a strong economy: “We prefer an absolutely thriving economy, just like any American would, but we don’t need it.”