8 Best Dividend Paying Debt Free Stocks to Invest in

2. Mueller Industries, Inc. (NYSE:MLI)

Number of Hedge Fund Holders: 27

Market Cap as of December 7: $8.95 billion 

Enterprise Value as of December 7: $8.02 billion

Mueller Industries, Inc. (NYSE:MLI) ranks second on our list of the best debt free stocks that pay dividends. The American machinery industry company manufactures a wide range of products for industrial markets. The company has attracted investors’ interest due to strong operational improvements, favorable market conditions, and its undervalued position relative to competitors. MLI, a leader in essential but often overlooked markets, produces basic components for water infrastructure, HVAC, and industrial applications. The company benefits from a well-balanced business model, with its piping systems segment contributing the majority of its operational profits and revenues. The stock is up nearly 69% YTD.

In the third quarter of 2024, Mueller Industries, Inc. (NYSE:MLI) posted revenues of $997.8 million, which jumped by 21.7% from the same period last year. The company’s operating income came in at $206.7 million, up from $181 million in the prior-year period. The rise in net sales was driven by $102.4 million in sales from recently acquired businesses, along with the increase in copper prices.

Mueller Industries, Inc. (NYSE:MLI) has been growing its dividends for the past four years. The company currently offers a quarterly dividend of $0.20 per share and has a dividend yield of 1.02%, as of December 7.

Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 27 funds owned stakes in Mueller Industries, Inc. (NYSE:MLI), up from 25 in the previous quarter. The overall value of these stakes is more than $424.7 million. Among these hedge funds, GAMCO Investors was the company’s leading stakeholder in Q3.