Five colleagues left Litton Industries in 1966 with a plan to go it alone and sell high‑altitude research balloons. The balloons didn’t sell. So, they tried vacuum‑forming plastic canoes. The canoes didn’t sell either. Then came computer software and then, naturally, leather footwear. By 1968, one cofounder had died, three had bailed, and the lone survivor—staring down bankruptcy—brought in an outside investor and bought a failing paper mill, mostly because at that point, why not.
Against all odds, good management actually turned the paper business around, and those profits fueled a long run of acquisitions. Paper eventually gave way to power tools, which gave way to industrial equipment, which gave way to pumps and valves. Today, the whole enterprise has reinvented itself yet again—this time as a focused water‑technology company.
Founded in Minnesota, later headquartered in Switzerland, then incorporated in Ireland, with tax residency in the United Kingdom, yet still keeping its main U.S. office right back in Minnesota, this company of product pivots and postal codes apparently has the financial stability and discipline required to raise dividends for 50 consecutive years.
All hail Pentair plc!
Condensation
Just like vapor in the air condenses into water, Pentair plc [PNR] began in the air, wandered through scattered, shapeless ventures, and ultimately condensed into a clear, focused identity in water.
‘Penta’ (Latin for the ‘five’ founders) and ‘air’ for the balloons. Nice.
Hey, at least they stuck with the original name.
According to Schwab:
Pentair plc provides various water solutions in the United States, Western Europe, China, Eastern Europe, Latin America, the Middle East, Southeast Asia, Australia, Canada, and Japan. The company operates through three segments: Flow, Water Solutions, and Pool. The Flow segment designs, manufactures, and sells fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles. This segment provides products under Pentair Flow, Aurora, Berkeley, Codeline, Fairbanks-Nijhuis, Haffmans, Hydromatic, Hypro, Jung Pumpen, Myers, Sta-Rite, Shurflo, Südmo, and X-Flow brand names. The Water Solutions segment offers commercial and residential water treatment products and systems, such as pressure tanks, control valves, activated carbon products, commercial ice machines, conventional filtration products, and point-of-entry and point-of-use water treatment systems for use in water filtration and water softening solutions, as well as commercial water management and filtration solutions in foodservice operations; and installation and preventative services for water management solutions for commercial operators under the Pentair Water Solutions, Everpure, Fleck, KBI, Manitowoc Ice, Pentek, and RainSoft brand names. The Pool segment provides residential and commercial pool equipment and accessories, including pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment, and pool accessories for residential and commercial pool maintenance, pool repair, renovation, service, construction, and aquaculture solutions. This segment offers products under the Pentair Pool, Kreepy Krauly, Pleatco, and Sta-Rite brand. Pentair plc was founded in 1966 and is headquartered in London, the United Kingdom.
PNR becomes the 13th Dividend King from the Industrials sector. Below is a list of all the Kings in the sector and the industry in which they conduct their business.
| Company | Ticker | Industry |
| ABM Industries Inc | ABM | Commercial Services & Supplies |
| Automatic Data Processing Inc | ADP | Professional Services |
| Dover Corp | DOV | Machinery |
| Emerson Electric Co | EMR | Electrical Equipment |
| Gorman-Rupp Co | GRC | Machinery |
| W.W. Grainger Inc | GWW | Trading Companies & Distributors |
| Illinois Tool Works Inc | ITW | Machinery |
| MSA Safety Inc | MSA | Commercial Services & Supplies |
| Nordson Corp | NDSN | Machinery |
| Parker-Hannifin Corp | PH | Machinery |
| Pentair plc | PNR | Machinery |
| Stanley Black & Decker Inc | SWK | Machinery |
| Tennant Co | TNC | Machinery |
PNR has increased its dividend for 50 consecutive years, though tracing that streak through decades of spin‑offs, restructurings, and stock splits is not for the faint of heart. One reason they’ve been able to maintain it, in my view, is their disciplined approach: Pentair rarely bites off more than it can chew. The dividend yield sits near 1%, and the payout ratio has been drifting lower for years, now hovering around 20%.
At the moment, PNR trades roughly 20% above its estimated fair value. Combined with the modest yield, that makes it unlikely to pass the Royal Dividends weekly screen—but that hardly means we don’t appreciate what this company represents.
And who knows: by the time PNR eventually earns its place in the Portfolio for the Ages, it may be operating in an entirely different line of business. Reinvention is, after all, part of the Pentair story.