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2.5 Reasons to Hold On to Mine Safety Appliances' Stock

By Chuck Saletta – Feb 18, 2014 at 11:34AM

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Solid balance sheet, covered and growing dividend, and a valuation that's not too stretched.

Mine Safety Appliances (MSA -0.01%) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers two-and-a-half reasons why he's holding on to Mine Safety Appliances' stock despite the 27% rise since he bought those shares a little more than a year ago.

Why dividends rule
A key reason why Mine Safety Appliances made the cut as an iPIG selection is one of the dirty secrets that few finance professionals will openly admit: Dividend stocks as a group typically outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best.

With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Summary:

  • Healthy balance sheet, with a debt-to-equity ratio of around 0.5.
  • Covered and growing dividend, with a 50% payout ratio and a 42-year history of increasing that dividend.
  • And the half-reason: Mine Safety Appliances' valuation isn't too far stretched to make it a compelling sell based on price.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here

Chuck Saletta owns shares of Mine Safety Appliances. The Motley Fool recommends Mine Safety Appliances. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

MSA Safety Stock Quote
MSA Safety
MSA
$134.47 (-0.01%) $0.01

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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