Eaton Corp (NYSE:ETN)

CAPS Rating: 4 out of 5

The Company is a manufacturer and engaged in design, manufacture, marketing and servicing of fluid power systems for industrial, mobile, and aircraft equipment; and electrical systems and components for power quality, distribution and control.


Player Avatar TMF1000 (99.71) Submitted: 8/24/2011 1:51:10 PM : Outperform Start Price: $36.54 ETN Score: +7.06

It was entered on Caps at $39.82. I followed this company since the early 1980's. Even in the worse of recessions, they remain profitable, but they are highly cyclical. In good times, the company does very well. Even though earnings dropped during the recession, they were able to maintain high levels of cash flow. In 2009, they were able to make over $1 billion in cash flow which was about what they made in 2008 and 2007. They made about $900 million in cash flow in 2010.

They are no longer tied overly much to the automotive industry. They have expanded their operations into many new markets. Their electrical and Hydraulics businesses are growing very well.

They pay $1.36 in dividends which now gives them a dividend yield of 3.4%. After 20 years of following it I think its time to add it to my portfolio.

But perhaps the thing that interests me most if the "Smart building initiative".

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