6 Stocks Still Hiking Dividends in This Market

Danaher

With a 0.22% dividend yield, Danaher (DHR) isn't exactly what I'd call a core income holding. But this diversified conglomerate does have the makings of a strong dividend payer down the road. Here's why.

Essentially, Danaher owns industrial businesses that manufacture everything from power tools to medical devices. In total, the company owns a portfolio of 40 different brands; that's an operational advantage that gives shareholders limited exposure to any one element of Danaher's business. But the most appealing factor about Danaher's investment worthiness is the fact that around half of all revenues are recurring -- that's the hallmark of a core income-payer in the making.

Historically, the company has focused its retained earnings on acquiring new businesses. That's an understandable choice -- and frankly, it's probably a better one for shareholders than a hefty dividend payout could ever be. Eventually, a maturing industrial firm will run out of high-return options to grow cash internally. When that happens, investors should count on more meaningful dividend income.

Danaher is one of the top-yielding conglomerates stocks as well as one of TheStreet Ratings' top-rated industrial conglomerates stocks.

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-- Written by Jonas Elmerraji in Baltimore.

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