Stock of the Day (Friday): Halma plc (HLMA)

If you're building a dividend growth portfolio and want something steady, Halma might be just the ticket.

Halma is a British company that owns a group of safety, health, and environmental technology businesses. Their products include fire and gas detection systems, medical devices, water analysis tools, and safety locks. Headquartered in Amersham, England, Halma is a constituent of the FTSE 100 Index. 

The company operates through a decentralized model, acquiring and managing nearly 50 companies specializing in safety technologies, healthcare devices, and environmental analysis. This approach has allowed Halma to maintain a strong presence in niche, highly regulated markets, providing it with a defensive edge. 

• Market Cap: ~£10.25 billion 

• P/E Ratio: ~38.07 

• Dividend Yield: ~0.81% 

• Dividend Growth: Halma has increased its dividend annually for 10 consecutive years. 

• Revenue (2024): £2,034.1 million 

• Net Income (2024): £268.8

Halma has a track record of consistent growth, with a 13% compound annual growth rate in earnings per share since 2005. The company focuses on long-term growth through both existing operations and strategic acquisitions, achieving a 60% increase in annual adjusted pre-tax profits over five years. 

While the dividend yield may seem modest, Halma's commitment to steady dividend increases and its strong cash generation make it an attractive option for investors seeking reliable, long-term growth

Halma isn't a flashy stock, but its consistent performance and focus on essential safety and health technologies make it a solid choice for a dividend growth portfolio.