1 Great Dividend Stock to Buy for 2016

Eaton Corp, PLC (NYSE:ETN) is down over 30% from its early year highs. That makes sense since the industrial giant has been lowering its organic growth forecasts all year long. But there's still a lot to like here, including an over 4% dividend yield backed by fairly regular dividend hikes. Here are three reasons why Eaton Corp is a buy now...

At one point in time, Eaton was focused on the auto business. But that's the old Eaton, the new Eaton is a power management business with its fingers in everything from autos to aerospace. This diversity is one of the top reasons to like the company. The second reason to like Eaton is its ability to generate cash. For example, the company had operating cash flow of $973 million in the third quarter -- a quarterly record for the company. The dividend is a key focus here because Eaton's yield is a generous 4.4% or so. That's on the high end of this company's historical range. But, as the cash flow statement shows, sustainable.

Source: Motley Fool

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