Best Retirement Stocks: Hillenbrand (HI)
Dividend Yield: 2.3%
Hillenbrand, Inc. (NYSE:HI) has been a separate publicly traded company since 2008, when Hillenbrand Industries was split into two. The medical device business became Hill-Rom Holdings, Inc. (NYSE:HRC), and the casket business became Hillenbrand Inc.
Hillenbrand, through several acquisitions made since the split, has added a second operating segment that designs and manufactures industrial equipment. Its revenues aren’t growing a whole lot — they remained around $1.6 billion in each of the last four years — but it is doing a good job generating strong operating cash flows from which it pays dividends.
The process equipment group segment has done a good job growing organically, boasting 10% growth in Q4 2016. That acted as a good counterbalance to the Batesville Casket Company, which continues to experience declining sales due to the increase in cremation services rather than traditional caskets.
The company has a one-year total return of nearly 25%, but I want to set expectations here. This stock isn’t going to make you rich — but it will be a fine steward of your retirement nest egg. This company is financially sound, and it will keep paying (and raising) its dividend.