57 Years Of Dividend Growth From This Cheap, Boring Stock?

Here’s a company millions of people depend on every day, they just don't know it.

ABM Industries Incorporated ($ABM) is a facilities services provider that keeps modern infrastructure running smoothly. The company employs janitors, electricians, technicians, and landscapers, assigning them to maintain office buildings, airports, stadiums, hospitals, data centers, and industrial facilities across the United States.

Over 55% of all Fortune 500 companies rely on ABM. And, the firm works to maintain over six billion square feet of property every day, making it one of the largest behind-the-scenes infrastructure support businesses in America.

ABM Industries was founded in 1909, and the company has consistently raised its dividend for 57 years. This makes ABM a Dividend King, or a company that has consistently raised its payouts every year for at least 50 consecutive years. Additionally, these raises still outpace inflation. And, ABM maintains a surprisingly low payout ratio.

Despite its Dividend King status and strong fundamentals, this stock has a relatively low valuation and a decent starting yield.

ABM could also be an interesting “picks and shovels” play on Big Tech.

Finally, unclogging toilets and replacing lightbulbs is one space that AI is unlikely to disrupt.

So, let’s take a deep dive into what ABM does and if it’s worth buying.

ABM Industries provides janitorial and building maintenance services for schools, hospitals, airports, airlines, semiconductor fabrication plants, data centers, and nuclear power facilities.

These services are low-margin, labor-intensive, and will never scale like software. But, they are also non-discretionary.

Someone always needs to sweep the floors and take out the trash.

Likewise, there are hundreds of businesses fighting to build the best data centers, meanwhile ABM has a monopoly on cleaning these facilities.

Janitorial services are not a high-growth industry. This is evident by ABM’s 10-year average annual total return of 7.12%. Certainly not a market-beater.

However, it’s important to put these returns in perspective…

Over the past decade, ABM outperformed several blue-chip consumer staples, including Kimberly-Clark. ABM also trades at a significantly lower valuation than other Dividend Kings such as Coca-Cola and Procter & Gamble. And that’s despite delivering comparable high-single-digit total returns since 2015.

So if you want a blue chip business with more than 50 years of consecutive dividend growth, ABM is a solid option.

At the time of writing, ABM Industries is valued at a price to earnings ratio of 12.80. The company pays a 2.27% starting yield. And, ABM’s five year compound annual dividend growth rate is 7.45% while being well-protected by a safe payout ratio of just 29.57%. This is a cheap blue chip with strong fundamentals and a timeless business model.

Would I buy this stock?

Maybe.

ABM operates in the service industry, which makes its share price sensitive to any bad news regarding the economy. So while the underlying business might be solid, the stock fluctuated between $40 and $54 in 2025 alone.

This is a choppy stock. And although ABM’s business model faces little disruption, it’s not particularly scalable. Still, at its current price ABM is cheap. This could be a great “set it and forget it” long-term investment. The company offers inflation-beating dividend growth, a low payout ratio, and a below market valuation that already reflects the stock’s long-term single-digit returns.

I’d buy this stock if the general market was overvalued and I couldn’t find any other good deals. Of the “no-brainer” blue chip dividend stalwarts, ABM is always one of the cheapest. And that alone makes it worth keeping on your watchlist.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.