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On Dec. 15, water solutions company Pentair announced its 50th consecutive annual dividend increase, increasing its quarterly cash dividend by 8%.
With this, Pentair is the latest company to join the legion of "Dividend Kings," or companies with at least a half-century track record of dividend growth.
Pentair is also returning capital via a newly announced $1 billion share repurchase program. Over time, these share repurchases could give the stock a small, yet meaningful boost.
There are currently just 56 "Dividend Kings," or stocks with more than 50 years of consecutive dividend growth. However, in the coming years many more companies will join this elite group. Some major names, like McDonald's, are just a few quarters away from reaching dividend king status.
In the meantime, however, there is a large-cap blue chip stock that has just attained this status: Pentair (NYSE: PNR). Better yet, alongside reaching this milestone, the water solutions company has made another announcement that may bode well for long-term investors.
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On Dec. 15, Pentair announced that it was raising its quarterly dividend by 8%, from 25 cents to 27 cents per share. Shareholders of record as of Jan. 23, 2026 will receive this newly increased dividend on Feb. 6, 2026. As noted in the press release, 2026 marks the 50th consecutive year that the company has increased its dividend.
Image source: Getty Images.
So far, this news hasn't had any positive impact on Pentair's price performance. That's not surprising. Investors are well aware of its long-standing track record of dividend growth. Pentair's current forward P/E of around 19 is close to similar industrial machinery companies with similar dividend growth track records.
Still, there may be potential for shares to rise, thanks to the other "return of capital" announcement made this week.
This week, Pentair also announced plans to repurchase up to $1 billion worth of shares over the next three years. Based on Pentair's $17 billion market cap, that's around 5.9% of the company's outstanding share count.
These share repurchases could provide a further boost for the stock over time. Consider it an added bonus, alongside the key drivers for shares: earnings growth and the dividend.
Sell-side analyst forecasts call for Pentair's earnings to grow by another 10% this year. Following the dividend increase, shares now have a forward dividend yield of 1.05%. Working together, these factors stand to serve as the foundation for solid total returns for years to come.
Before you buy stock in Pentair, consider this:
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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