Sure Dividend

High-Quality Dividend Stocks, Long-Term Plan
Member's Area

Dividend Kings In Focus: MSA Safety

Updated on October 12th, 2023 by Nathan Parsh

The Dividend Kings are a group of just 51 stocks that have increased their dividends for at least 50 years in a row. We believe the Dividend Kings are among the highest-quality dividend growth stocks to buy and hold for the long term.

With this in mind, we created a full list of all 51 Dividend Kings. You can download the full list, along with important financial metrics such as dividend yields and price-to-earnings ratios, by clicking on the link below:


Each year, we individually review all the Dividend Kings. The next in the series is MSA Safety (MSA).  This article will analyze the company in greater detail.

Business Overview

MSA Safety Incorporated, formerly Mine Safety Appliances, was established in 1914. Today, it develops and manufactures safety products. Customers come from a variety of industrial markets, including oil & gas, fire service, construction, mining, and the military.

Source: Investor Presentation

MSA Safety’s major products include gas and flame detection, air respirators, head protection, fall protection, air-purifying respirators, and eye protection gear.

In late July, MSA released second-quarter financial results. For the quarter, revenue came in at $447.3 million, a 20.1% increase compared to Q2 2022. Sales in the Americas segment were up 22%, while sales in the International segment improved by 16%.

Adjusted earnings equaled $72.1 million, or $1.83 per share, compared to $50.9 million, or $1.29 per share, in Q2 2022. For the full fiscal year 2023, we expect adjusted EPS to equal about $6.00, which would represent a 6.2% increase from the prior year.

Growth Prospects

MSA has put together a solid growth record in the past decade, growing earnings-per-share by an average rate of 10.6% per year from 2013 through 2022 period. Results in 2020 fell moderately, which was not unexpected given the coronavirus pandemic. However, earnings bounced back in 2021 and 2022, with 2023 results expected to reach a new high.

The company views its long-term outlook as healthy, which bodes well for its future growth.

Source: Investor Presentation 

MSA’s acquisition of Globe Manufacturing in 2017 boosted the company’s revenue growth profile and provided the company with an expansion into new product categories, such as protective clothing for firefighters. Innovations such as the thermal imaging camera in the self-contained breathing apparatus and the company’s V-Series line of fall protection have helped as well.

In addition, the Sierra Monitor acquisition, Bristol Uniforms acquisition, Bacharach acquisition, and a strong backlog cement the idea of the possibility of continued growth. Results were down in 2020 but still resilient, falling less than -7%.

Moreover, many of MSA’s products continue to be in demand in the current environment. Over the intermediate term, we are assuming a 7% annual growth, slightly below the company’s long-term growth rate.

Competitive Advantages & Recession Performance

MSA Safety has several competitive advantages that fuel its growth as the leader across the safety and protection products industry. It has a global reach that competitors cannot match, with roughly a third of annual sales from outside the Americas, and it can invest in growth initiatives to retain its industry leadership.

To be sure, there is some cyclicality inherent in the business – safety is always important, but budgets become squeezed at lesser times. That said, investors should be encouraged that the dividend kept increasing during recessions.

Earnings-per-share performance during the Great Recession is below:

That said, the company remained highly profitable during the Great Recession. This allowed it to continue increasing its dividend each year during the recession, even when earnings declined. And thanks to its strong brand portfolio, the company recovered quickly after 2010.

Valuation & Expected Returns

Using the current share price of nearly $155 and expected earnings-per-share of $6.00 for the year, MSA stock trades for a price-to-earnings ratio of 25.8. Over the past ten years, shares of MSA have traded hands with an average P/E ratio of about 23.0 times adjusted earnings. We feel that this is a fair valuation for the stock considering the quality of the company.

With a current P/E ratio of almost 26 times expected earnings, this implies the possibility of a valuation tailwind over the intermediate term. Returning to our target price-to-earnings ratio by 2028 would reduce annual returns by 2.3% over this period.

Aside from changes in the price-to-earnings multiple, future returns will be driven by earnings growth and dividends.

We expect 7% annual earnings growth over the next five years.

In addition, MSA stock has a current dividend yield of 1.2%. The company has increased its dividend for 53 consecutive years, including a 2.2% raise in May of 2023.

Total returns could consist of the following:

MSA is expected to return 5.7% per year through 2028. As a result, we have a hold recommendation on MSA stock, though the company’s ability to raise dividends through multiple recessions is impressive.

Final Thoughts

MSA Safety is a strong business with competitive advantages. Moreover, the company also has a reasonable growth profile. Total return potential comes in at almost 6% per year, driven by 7% growth and a 1.2% dividend yield, which are partially offset by a potential valuation headwind.

Therefore, MSA shares earn a hold rating.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

Thanks for reading this article. Please send any feedback, corrections, or questions to