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Briggs & Stratton

Briggs & Stratton NYSE:BGG12/3 Dividend Yield: 2.4%

Combine the inventiveness of Stephen F. Briggs, who worked with engines and power equipment, with the financial acumen of Harold M. Stratton, and you get Briggs & Stratton (NYSE:BGG). Now a 100-year-old-plus producer of air-cooled gasoline engines for outdoor power equipment, it’s best known for its small, reliable engine technology for a variety of uses, especially powered lawn mowers.

Today’s BGG has branched out using the same baseline business model, offering engines for industrial, agricultural and construction applications, while its products segment manufactures and sells portable and standby generators,  snow blowers, and lawn and garden equipment.

The result is a $1 billion market cap company that has paid a steady dividend since 1929. BGG’s 12-cents-per-share quarterly payout gets you a 2.38% dividend yield, and the share price is just over $20. Some caution might be in order because the company’s 63x price-earnings ratio appears perhaps a little bit rich. But with year-to-date and one-year returns of more than 30% on its shares, lots of investors believe strongly in the company.

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