Eaton PLC: A Strategic Addition to the Dividend Growth Portfolio
New addition to the Hike Portfolio with positive dividend growth trend
One of the latest additions to the Dividend Hike portfolio is Eaton PLC ETN 0.00%↑ , an “intelligent power management company” with strong structural tailwinds and a compelling long-term dividend growth profile.
📌 Key Points – Eaton (Dividend Portfolio Addition)
🚀 Dividend growth re-accelerated: +10.6% in 2025 after +9.3% in 2024.
💰 2025 free cash flow expected at $3.9B vs. $1.5B in dividend payouts.
📈 Revenue projected to hit a record $27.25B in 2025 (+9.5% YoY).
⚡ EBIT margin consistently >20% — strong operational profile.
🔄 Share buybacks in 2024: 0.9% of shares retired; room to increase.
📊 29 analyst ratings: 6 strong buys, 13 buys, 10 holds — 0 sells.
The position was initiated last month. We added Eaton to the portfolio last month at $290. Now trading at $325, the stock still trades at a forward P/E of 27—far from excessive given its strong growth outlook.
Eaton impressed with a double-digit dividend hike earlier this year, a structurally high EBIT margin above 20%, and a 1.3% dividend yield—elevated for the sector, especially for a company with the potential for sustained double-digit dividend growth.