Summary
- Danaher's 63-month total return is fantastic, beating the Dow 63-month baseline by 138.09%.
- Last quarter's earnings beat expected results by $0.25 on the bottom line and top line beat with a good gain over last year's results.
- Danaher's three-year forward CAGR of 15% is good and will give you long-term growth with the increasing demand for more medical and industrial products as the economy and population increase.
- The dividend was last increased from $0.18/Qtr. to $0.21/Qtr. or a 16.6% increase.
Danaher (DHR) company designs, manufactures, and markets professional, medical, industrial, and commercial products and services is a buy for the total return investor. Danaher, a worldwide company in 60 countries, has steady growth and has plenty of cash flow, which it uses to increase the dividend each year and buy bolt-on companies. Danaher is 1.2% of The Good Business Portfolio, my IRA portfolio of good business companies balanced among all styles of investing. I want to increase the portfolio of growth companies' positions but never seem to have any cash because of my RMD requirements. I don't sell much, just what I need to meet my RMD distribution.
As I have said before in previous articles.
I use a set of guidelines that I codified over the last few years to review the companies in The Good Business Portfolio (my portfolio) and other companies that I am reviewing. For a complete set of guidelines, please see my article "The Good Business Portfolio: Update to Guidelines, March 2020". These guidelines provide me with a balanced portfolio of income, defensive, total return, and growing companies that hopefully keep me ahead of the Dow average.
The Good, Buy
The method I use to compare companies is to look first at the total return compared to the market. If a company cannot beat the market, why do you want to invest in that company? The great Danaher total return of 220.74% compared to the Dow base of 82.65% over my 63-month test period makes Danaher a fantastic investment for the total return investor. Looking back five years, $10,000 invested five years ago would now be worth over $32,700 today. This gain makes Danaher a good investment for the total return investor looking back, which has future growth with increased earnings as the COVID-19 virus is controlled by July 2021 in the United States. Overall, Danaher is a good business with an S&P CFRA 3-year CAGR of 15% projected growth as the United States and foreign economies grow going forward, with the increasing demand for Danaher's products and services as the COVID virus gets under control worldwide in the next two years.
