The Aristocratic Touch: Parker-Hannifin Corporation (PH) and More

Parker Hannafin is the youngest of these companies, founded in 1918. It just raised the quarterly dividend 5% on January 25.

Lord Grantham should have bought stock in iconic American agriculture play, Deere & Company (NYSE:DE). based in the heartland of Moline IL and founded in 1837. This too was a difficult choice between Deere and Monsanto Company (NYSE:MON), another agriculture Dividend Aristocrat, as some might argue Deere sells tractors but it is also into forestry and construction equipment, thus another infrastructure play as well. Monsanto has a higher P/E and a lower yield and socially responsible investors take issue with some of the company’s practices.

Deere is trading at a 12.32 P/E and offers a 2.00% yield at a 23% payout ratio. The company offers a “brilliant” 44.92% return on equity and seems to have broken out from its mire in the $75-$80 range. The company just reported Q1 earnings on February 13 and despite beating on earnings and raising guidance has been selling off over 3%. This is due to their own predictions for lower corn and soybean cash receipts for farmers leading to worries over ag equipment sales.

Ta Ta For Now

I can’t wait for Lord Grantham’s next investment idea. It’s usually the only comic relief in the costume drama except for The Dowager Countess’ witticisms. All of these companies could have been much better alternatives for Lord Grantham. Near term upside for Deere may be limited but any one of these is a good long term hold..

The article The Aristocratic Touch originally appeared on Fool.com and is written by AnnaLisa Kraft.

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