We recently published a list that publishes 10 overlooked dividend stocks to buy now. In this article we will take a look at where Graco Inc. (NYSE: GGG) stands against other overlooked dividend shares.
In recent times, dividend investments – also known as stock income – has fallen in favor. After a widespread and reliable strategy, it was gradually overshadowed. The strong capital gains that have been achieved by growth stocks seem to avert investors’ attention from the more stable and more consistent returns that are associated with dividend payment stocks.
The latest market depression in combination with the economic effects of Trump’s trade policy has again made this type of shares aware and appealed. The S&P Dividend Aristocrats Index, which pursues the performance of companies with at least 25 consecutive years of dividend growth, has dropped by a little more than 2% since the beginning of 2025, compared to 6% to the broader market.
Dividend shares have recorded mixed results in various economic cycles – in some downturn well and fallen back in others. They exceeded the wider market during the recessions from July 1981, March 2001 and December 2007 in general. However, their performance remained during the shorter recessions in 1980 and 2020. This was mainly due to dividend cuts from large companies, together with a limited exposure to rapidly growing technical names. For the context, the steepest decline in dividends in the financial crisis in 2008/09, when the S&P dividend distributions decreased by 24%, even though investors were still receiving 76% of their income.
Although the possibility of dividend reduction is a valid problem and a potential disadvantage of this strategy, it shouldn’t be a reason to overlook dividend shares as a whole. If you are taken in thoughtful, you can still play a valuable role in a rounded investment portfolio.
M&G Investments found that dividends serve more than just an income – they also signal the trust of a company for the financial health and management of a company. While the short -term market returns often weaken from stock ratings, dividends play a significant role in increasing the return on equity over longer periods such as 10 or 20 years. The report also mentioned under cited data from Bloomberg that dividends play an important role in long -term returns. In the past 25 years, almost half of the total profits of US shares have come from re -established dividends and the power of the network. During this period, the broader market delivered an average annual return of 7.4%, with 55% of rising share prices and the remaining 45% of re -established dividend yields.
The fact that dividends are not guaranteed shows a deeper financial history behind corporate decisions. Companies have to carefully weigh up the compromise between the shareholders and make future expansion available to sufficient profits. The right of this balance is a strategic task.
A particularly high dividend distribution rate – typically over 75%, although this varies depending on the sector – can increase the red flags through sustainability. If too much profit is paid out, there is little space left to increase the dividends across the board. Ultimately, this could lead to a company repetition or even stopped its dividend payments, which hinders both business growth and long -term profits of the stock value. In view of this, we will take a look at some overlooked stocks that pay dividends.
Graco Inc. (GGG): On the overlooked dividend shares that can now buy
A technician in a factory that controls the production of fluid and powder materials.
For this list we thoroughly checked serious sources such as Forbes, Morningstar, Barron and Business Insider and searched for shares that remain under the radar but have strong balance sheets and solid financial data. In addition, these less well-known dividend companies also offer dividend wax-track track records, which make them a reliable option for income investors. After we have put together our data, we selected 10 companies with the highest number of hedge fund investors, according to the fourth 2024 database from Insider Monkey.
Why are we interested in the stocks in which hedge funds are stacked? The reason is simple: Our research has shown that we can outperform the market by imitating the top shares selection of the best hedge funds. The strategy of our quarterly newsletter selects 14 small cap and large cap shares every quarter and has returned 373.4% since May 2014. He exceeded his benchmark by 218 percentage points ((by 218 percent) (You can find more information here).
Number of hedge fund holders: 26
Graco Inc. (NYSE: GGG) took seventh place on our list of the best overlooked stocks. The company stands up as a top producer of Fluid handling devices and focuses on solutions that are tailored to hard materials that are thick, aggressive or corrosive. While it works in various cyclical industries, around 40% of its sales are generated from parts and accessories, which contributes to maintaining more and more demand. The company’s high-end products offer customers solid returns by reducing the costs for work, material and energy, which at the same time improve the quality and support of better environmental performance.
In the first quarter of 2025, Graco Inc. (NYSE: GGG) recorded sales of $ 528.2 million, which recorded growth of 7.3% compared to the same period of the previous year. The sales also exceeded the estimates of the analysts by $ 5.32 million. The company’s operating result and the company’s net profit also grew by 8% or 2% after Yoy. It also recorded solid organic growth both in its industrial and expansion market segments, which were due to improved activity in industrial and semiconductor end markets in the quarter. In the contractor segment, Corob made an increase of 6% and, as expected, achieved a service.
Graco Inc. (NYSE: GGG) currently offers a quarterly dividend of $ 0.275 per share and has a dividend yield of 1.35%from April 25. In 2024, the company achieved the 24th year with dividend growth in a row.
Total GGG 7th place On our list of the best overlooked dividend shares in which we can invest, we will recognize the potential of GGG as an investment. Our conviction is convinced that some deeply undervalued dividend shares have a higher promise to achieve higher returns, and do so within a shorter time frame. If you are looking for a deeply undervalued dividend share that is more promising than GGG, which, however, grows tenfold profit with double -digit interest rates per year, read our report on the Dirt cheap dividend stock.
