A UK-listed multinational engineer with strong growth and rising dividends

Spirax-Sarco is a world-leading engineer making consistent progress in three niche markets, with an order book at an all-time high.

Spirax-Sparco engineer
Spirax’s businesses include electrical heating
(Image credit: © Jean Francois Monier/AFP via Getty Images)

The UK has several high-quality engineering companies with strong positions in their market niches and long records of increasing dividends. For example, Spirax-Sarco (LSE: SPX) is a FTSE 100 company with a wide moat against competitors, recurring revenue amounting to 50% of sales and a 54-year record of increasing dividends.

Spirax is a multinational, with manufacturing sites in 14 countries and sales in 68 countries, and three business divisions. The largest is Steam Specialities, which amounts to 56% of sales. This comprises the control and management of industrial steam systems for heating, curing, cleaning, sterilisation, space heating and humidification.

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Dr Mike Tubbs

Highly qualified (BSc PhD CPhys FInstP MIoD) expert in R&D management, business improvement and investment analysis, Dr Mike Tubbs worked for decades on the 'inside' of corporate giants such as Xerox, Battelle and Lucas. Working in the research and development departments, he learnt what became the key to his investing; knowledge which gave him a unique perspective on the stock markets.

Dr Tubbs went on to create the R&D Scorecard which was presented annually to the Department of Trade & Industry and the European Commission. It was a guide for European businesses on how to improve prospects using correctly applied research and development. He has been a contributor to MoneyWeek for many years, with a particular focus on R&D-driven growth companies.