MSA Safety: An Investment Opportunity with Dividend Growth Ahead

A report highlights MSA Safety as an outstanding investment choice, showcasing impressive dividend growth and a stable business model. It suggests that MSA Safety could still see significant total returns, reinforcing its reputation among Dividend Kings.

Date: 05-10-2024

AI Rating: 7

MSA Safety, a prominent player among Dividend Kings, is noted for its remarkable total returns exceeding 4,360% since the beginning of the millennium. The text mentions that MSA has achieved 54 consecutive years of annual dividend increases, which underscores its reliable performance and commitment to returning value to shareholders.

A key point of interest is the potential for accelerating dividend growth, driven by MSA's solid profitability trends. It mentions that, while the historical increase has been approximately 5% annually, the company’s ability to generate free cash flow (FCF) in excess of its dividend obligations provides a strong foundation for future increases.

In terms of financial metrics, MSA's FCF utilization for its dividend stood at a mere 22%, indicating significant available cash to support potential dividend hikes. Additionally, the report highlights MSA's impressive return on invested capital of 21%, a positive signal regarding its efficiency and profitability as compared to peers.

With steady sales growth projected at 4% to 5% through 2028, MSA Safety presents itself as a premium business trading at a competitive valuation, currently boasting an FCF yield of 4.8%. This factor further substantiates the narrative of MSA as a good investment choice for those seeking consistent income and long-term capital appreciation.

The report's emphasis on MSA's strong employee retention and customer satisfaction metrics reflect positively on its operational health, which are crucial for sustaining its growth trajectory.

Stocks: MSA