IIRIngersoll Rand Inc.

Ingersoll Rand makes industrial compressors and pumps — equipment that runs continuously and therefore constantly needs servicing.

Compressed air is a factory's fourth utility alongside electricity, water and gas: without it the line stops. A compressor is therefore bought for reliability rather than price and serviced by the same supplier. The installed base yields parts, service and upgrades — income steadier and more profitable than selling the machines.

The company grows by acquiring small makers of pumps and dosing systems and folding them into a shared sales network. Demand comes from industrial production and is therefore cyclical, but the service share softens the troughs. Risks: the industrial cycle, acquisition prices and component costs. The dividend is token, but the company buys back stock actively.