10 Overlooked Dividend Stocks to Buy Now

3. Lincoln Electric Holdings, Inc. (NASDAQ:LECO)

Number of Hedge Fund Holders: 36

Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is an Ohio-based multinational company that specializes in welding products. The company is also known for its proficiency in industrial automation and cutting equipment. Recently, the company has focused on expanding its industrial automation segment, anticipating significant growth and nearly $1 billion in revenue.

Lincoln Electric Holdings, Inc. (NASDAQ:LECO)’s strategy revolves around meeting customer demand and effectively managing costs. By delivering high-quality products and fostering strong brand loyalty, the company maintains a competitive edge in a mature industry. Its investment in technology and commitment to a skilled workforce further strengthen its market position.

In the fourth quarter of 2024, Lincoln Electric Holdings, Inc. (NASDAQ:LECO) reported revenue of $1.02 billion, down 3.45% from the same period last year. However, the revenue surpassed analysts’ estimates by over $26 million. Although enhanced operational efficiencies had a positive impact, macroeconomic challenges and fluctuations in industrial sector demand continued to pose potential risks. Special item charges and higher selling expenses led to a 10.5% year-over-year decline in net income, which totaled $140.2 million.

Lincoln Electric Holdings, Inc. (NASDAQ:LECO) ended the year with over $377 million in cash and cash equivalents. The company reported an operating cash flow of $95.8 million. In FY24, it returned $426 million to shareholders through dividends and share repurchases, affirming its commitment to shareholder return. In addition, it has been growing its payouts for 29 consecutive years. Currently, it pays a quarterly dividend of $0.75 per share for a dividend yield of 1.61%, as of April 25.