Pentair Just Paid Out: Is This Industrial Dividend Built to Last?

"Pentair plc (PNR) delivered its latest quarterly dividend of $0.27 per share on February 6, 2026, marking another milestone in a streak that now spans 50 consecutive years of annual dividend increases. At a current price of $102.08, the water treatment specialist offers a modest yield that reflects its growth-oriented profile rather than income maximization - but the dividend's rock-solid foundation and accelerating growth rate tell a more compelling story than the headline number suggests."

"What matters is the trajectory. Pentair raised its dividend 8.0% in early 2026, following an 8.7% increase in 2025. That's meaningful acceleration compared to the mid-single-digit increases typical of mature dividend payers. Johnson & Johnson, for instance, raised its dividend 4.8% in 2025, while Procter & Gamble delivered a 5.0% increase. Even 3M's recent 6.8% bump-coming off a lower base after dividend policy adjustments-doesn't match PNR's recent momentum."

"Pentair generated $814.8 million in operating cash flow for fiscal 2025, while paying out just $164.3 million in dividends. That's a payout ratio of 20.2% of operating cash flow-exceptionally conservative by any standard. Even after accounting for $68.8 million in capital expenditures, free cash flow of $746.0 million covered the dividend 4.55 times over. Compare that to Johnson & Johnson's 50.5% payout ratio or 3M's earnings-based concerns (net income declined 19.9% year-over-year while maintaining a $2.92 annual dividend)."

Pentair paid a $0.27 quarterly dividend on February 6, 2026, extending 50 consecutive years of annual dividend increases. At $102.08 per share the annualized payout is $1.08, yielding approximately 1.01%. Dividend growth accelerated with 8.7% and 8.0% raises in 2025 and early 2026, outpacing peers such as Johnson & Johnson, Procter & Gamble and 3M. Fiscal 2025 operating cash flow totaled $814.8 million while dividends paid were $164.3 million, a 20.2% payout of operating cash flow. Free cash flow of $746.0 million covered dividends 4.55 times, showing conservative payout and strong sustainability.

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