MSC Industrial Direct: Restructuring And Dividend Growth Means Buy

I first wrote about MSM Industrial Direct Co. Inc. (MSM) in July 2019. The stock was beaten down due to a slowing manufacturing environment and difficulty maintaining margins. The company is also not that well-known. But the company is a major player in industrial products and services distribution. For those seeking dividend growth and income, MSC Industrial is in my opinion an excellent choice. The company raised the recently regular quarterly dividend 19% and the forward yield is ~4%, which is reasonably well-covered. The dividend has been raised for 16 consecutive years making the stock a Dividend Contender. Last month, the Dividend Power Score was 9.30, which is a very good value in my ranking model. Two days ago, the company announced a $5 per share special dividend. Although margins are still pressured, the company is restructuring to improve productivity and operational efficiencies. I view the stock as a long-term buy.

Please read the complete article at my profile on Seeking Alpha.

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