Donaldson Company (DCI): A Hidden Gem in the Industrial Sector

Donaldson Company, Inc. (NYSE:DCI) was recently included on our list of Dividend Champion vs Aristocrats: 12 Under the Radar Stocks to Buy.

Donaldson Company (DCI): A Hidden Gem in the Industrial Sector

A close-up of a factory worker carefully installing a part on an air filtration system.

The company manufactures filters used in a wide range of applications— from computers and power plants to large industrial machinery— helping protect these systems from damage and enhancing their overall efficiency. The stock has surged by over 6.6% since the start of 2025.

Donaldson Company, Inc. (NYSE:DCI) demonstrated its strength by reporting record sales and record adjusted earnings per share in fiscal Q3 2025. It also increased its full-year adjusted earnings per share guidance and accelerated its share repurchase program, buying back 3.3% of its outstanding shares since the beginning of the year. The company reported revenue of $940.1 million, up 1.3% from the same period last year. The revenue also beat consensus estimates by $6.65 million.

For the first nine months of the year, Donaldson Company, Inc. (NYSE:DCI) generated $251 million in operating cash flow and had $178.5 million available in cash and cash equivalents. The company remained committed to its shareholder obligation, returning $32.3 million to investors through dividends in the third quarter. Currently, it offers a quarterly dividend of $0.30 per share and has a dividend yield of 1.68%, as of July 23. The company has been growing its payouts for 29 years.

While we acknowledge the potential of DCI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DCI and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.