Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dividend Aristocrats In Focus Part 11: Ecolab Inc. (ECL)

Page 1 of 3

Ecolab Inc. (NYSE:ECL) is the largest publicly traded company in the cleaning products industry. Ecolab’s vision is guided by four key principles, which are:

1. Clean water

2. Safe food

3. Abundant energy

4. Healthy environments

Abiding by these core principles has built very successful relationships with its customers.

drinking, elderly, health

Goodluz/Shutterstock.com

Ecolab traces its beginnings to 1923, when Merritt J. Osborn invented a new cleaning product called Absorbit. This product was revolutionary for its time. It cleaned carpets without the need for hotels to shut down to perform carpet cleaning. The product held so much promise that Osborn built an entire company around it. He called the company Economics Laboratory.

Over time, the company developed a wide range of other products and also entered cleaning services. Today, Ecolab generates annual sales in excess of $13 billion and employs 47,000 associates. The company has increased its dividend payments every year since 1985 (3).

Ecolab’s long dividend history makes it a member of the exclusive Dividend Aristocrats Index. To be a Dividend Aristocrat, a stock must have at least 25 consecutive years of dividend increases. Dividend Aristocrats tend to be the ‘best of the best’ in their industry. You can see all 50 Dividend Aristocrats here.

Ecolab has done more than just increase dividends over the last decade… It has also delivered strong total returns, as the image below shows.

ecl-performance

Keep reading this article to learn more about the investment prospects of Ecolab.

Business Overview

Ecolab operates three major business segments:

– Global Industrial

– Global Institutional

– Global Energy

Each business is roughly of equal size. The Global Industrial group provides water treatment, cleaning, and sanitation products and services, primarily to large industrial firms. These customers are typically within the food and beverage, manufacturing, chemical, and mining industries.

The Global Institutional business provides specialized cleaning and sanitation products to the foodservice, hospitality, lodging, healthcare, and retail industries. Ecolab’s products are used for on premise laundry, housekeeping, and general food safety purposes.

The Global Energy segment is centered on the Nalco brand. This division provides chemical and water treatment services to the petroleum and petrochemical industries. Ecolab’s Global Energy business is split into upstream oilfield services and downstream refining services.

The company is also diversified geographically. Approximately 43% of its annual sales come from outside North America.

diversified-portfolio

Source: 2015 Annual Report, page 2

Follow Ecolab Inc. (NYSE:ECL)
Trade (NYSE:ECL) Now!

Page 1 of 3
Loading Comments...