Allegion plc (ALLE)

Allegion makes locks, door closers and access control systems — what sits on the door.

A lock and door hardware cost little relative to a building, but the requirements for them are written into building codes and fire regulations. The product is certified for a specific application and the architect specifies it in the drawings — hence a supplier position that holds.

Replacing door hardware in a school or a hospital happens on a schedule and does not depend on whether new buildings are going up, which makes revenue less cyclical than building materials. The growing line is electronic locks and phone-based access. Risks: the construction cycle, non-ferrous metal prices and competition. A dividend is paid.