The smartest dividend shares to buy $ 5,000 at the moment

  • Parker-Hannifin is an engineering company specializing in movement and control technologies that has paid dividends for 300 consecutive quarters.

  • WW Grainger is a global distributor of industrial support products that constantly increases its revenue, net income and free cash flows over the years.

  • Procter & Gamble is a consumer product Behemoth that has raised its dividends for 69 consecutive years.

  • 10 shares we like better than Parker-Hannifin ›

Dividends can be described as a gift that continues to give, as dividend shares can deliver you passive income for years or even decades. The good news is that it is easy to build a portfolio of dividing stocks with a wide selection of stocks there, but the key is to choose the right ones to have.

Companies with strong business models, well -known brands, and these are leaders in their area are a good first filter. You should also make sure that they kill a constant free cash flow and boast an attempt to increase their dividends over the years or even decades. After identifying these shares, you need to buy and keep them in the long run and enjoy the dividends that flow into your bank account.

Here are three dividend shares that you may want to buy with $ 5,000 from your savings.

Image source: Getty Images.

Parker-Chanifin (Nyse: pH) is a leader in movement and control technology and serves industrial and aerospace markets. The company has demonstrated stable revenue and growth of net income over the years, as shown in the table below. Gross margin is also steadily increasing over the same period, with free cash flow growing in tandem.

Metric

2022

2023

2024

Revenue

$ 15,862 billion

$ 19.065 billion

19.930 billion dollars

Gross

$ 5.311 billion

$ 6.429 billion

$ 7,128 billion

Gross margin of profit

33.5%

33.7%

35.8%

Net income

$ 1.316 billion

$ 2,083 billion

$ 2.844 billion

Free cash

$ 2,212 billion

$ 2.599 billion

$ 2,984 billion

Data Source: Parker-Hanifin. The fiscal years end June 30.

Parker-Chanifin continued to report solid results for the first nine months of the fiscal 2025. Although the revenue remained equal to a year of about $ 1.46 billion, the company managed to improve its gross margin again, from 35.7% to 36.7%, which led to a gross profit, which increased by 1.8% compared to the year. The free cash flow was healthy, growing almost 8% compared to a year to $ 2 billion. The company recently increased its quarterly dividend by 12% compared to a year to $ 1.80 per share, marking its 69th consecutive year of increase in dividends.

Parker-Hanifin maintains position # 1 in the movement and control industry and has a greater exposure to longer cycles, along with secular growth trends that can help increase their revenue and profits further. The acquisitions of Clarcor of Clarcor, manufacturer of products and technologies for filtering, and Meggitt, which sells aerospace and defense technologies and products, also helps to increase their capabilities and expand their set of customer products. For 2025 fiscal, Parker-Chanifin sees the greatest growth coming from the aerospace and defense sector and expects to generate a free cash flow of about $ 3.1 billion. This sequential increase in free cash flow should continue to feed dividends higher in the foreseeable future.

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