Carlisle Companies Incorporated (CSL)

Carlisle makes materials for the flat roofs of commercial buildings — membranes and insulation.

The roof of a warehouse or a shopping centre lasts about twenty years and then leaks — replacement is deferred exactly until that moment and does not depend on whether anything new is being built. Most revenue therefore comes from replacement rather than new construction, and demand is steadier than for building materials generally.

The roofer chooses the material by habit and by warranty: the manufacturer trains crews and honours the guarantee only for work by a certified contractor — that is what ties the channel. The company sold its non-core lines and concentrated on roofing. Risks: raw material prices, the construction cycle and weather shifting the season. The dividend has been raised for many consecutive years.