12 Best Dividend Kings to Buy For Safe Dividend Growth

3. Parker-Hannifin Corporation (NYSE:PH)

5-Year Average Annual Dividend Growth Rate: 13.12%

Parker-Hannifin Corporation (NYSE:PH) is an Ohio-based manufacturing company that specializes in motion and control technologies. The company operates through two main segments: Diversified Industrial and Aerospace Systems. Its product range spans from basic industrial components to advanced aerospace technologies. It supplies these offerings to original equipment manufacturers as well as a broad base of customers around the globe.

Parker-Hannifin Corporation (NYSE:PH) is well-regarded for its robust dividend payouts and strong cash flow generation. For FY24, it reported a 20% increase in year-to-date operating cash flow, reaching a record $2.1 billion, or 14.6% of sales, compared to $1.8 billion in the previous year. It also saw significant improvements in adjusted segment operating margins, with the Aerospace Systems segment delivering particularly strong results. This strong financial performance has contributed to the record operating cash flow. Looking ahead, the company expects a 50% increase in free cash flow and plans to double its dividend over the next five years, providing shareholders with higher payouts annually, which is expected to positively impact the stock’s value.

Parker-Hannifin Corporation (NYSE:PH) pays a quarterly dividend of $1.63 per share and has a dividend yield of 1.26%, as of April 4. The company holds one of the longest dividend growth streaks in the market, spanning 68 years. Moreover, its five-year average annual dividend growth comes in at over 13%.