#7 - Mueller Industries (MLI) (NYSE:MLI)
Mueller Industries, Inc. (NYSE: MLI) is proof positive that when it comes to building a rock-solid portfolio, boring can be beautiful. It doesn’t get much more pedestrian than fittings for industrial products. But that’s what Mueller brings to the table. There are few businesses that are as “essential” to what other companies need than Mueller.
The company does business on several continents and in its 106-year history has never had an unprofitable quarter. That’s what investors call money in the bank. And also a great reason to own MLI stock.
MLI stock is up over 54% in 2023. That’s one reason that Mueller’s market cap has grown to over $4 billion which has moved the stock into mid-cap territory. And the company offers a dividend that, on first glance, may not seem that impressive with a yield of 1.50%. But the annual payout of $1.20 a share isn’t bad when you compare it to a June 2023 share price of just over $80.
About Mueller Industries
Mueller Industries, Inc manufactures and sells copper, brass, aluminum, and plastic products in the United States, the United Kingdom, Canada, South Korea, the Middle East, China, and Mexico. It operates through three segments: Piping Systems, Industrial Metals, and Climate. The Piping Systems segment offers copper tubes, fittings, line sets, and pipe nipples.
Read More - Current Price
- $79.71
- Consensus Rating
- Buy
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $105.00 (31.7% Upside)
Manufacturing stocks deserve a place in every investor's portfolio. But it should only be a portion of that part of your portfolio that skews toward value.
These stocks tend to be low beta stocks. This means that they will not match the growth of some of the high-performing tech stocks. The converse of this is that these stocks also tend not to force investors to endure the sharp sell-off's that can occur in the tech sector.
But what these stocks may lack in sizzle, they more than make up for in security. The market is always forward looking. So, manufacturing stocks will start to outperform the market before lagging economic indicators will suggest that they should.
Rather than guessing when that turnaround will take place, having a solid base of manufacturing stocks keeps you from trying to time the market. And, in many cases, you'll be able to collect a reliable dividend when the sector is slowing down.
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