Jon Quast

This is a smart water meter company.

Its customers are municipalities.

Those are hard customers to get, but they're pretty sticky once you have them.

I think the value proposition for this company is that if there's a leak somewhere in the water line, you're wasting money.

You're wasting water.

Its smart meters detect those leaks, help track it down.

The idea is, hey, invest in some of Badger Meter's products and you'll save money in the long run.

When you look at this company financially, it's pretty attractive, I think.

Revenue is growing by double digits.

Its profits are growing even faster.

It has a growing software business to complement its hardware business, so that can help boost margins.

There's no debt on the balance sheet.

And

It's paid a growing dividend for over 30 years.

Most recently, it increased it by 18%.

The payout ratio is still pretty low, down around 30%.

To me, Badger Meter looks like a safe business.

You have a chance for both growth and income if you're an investor.

It's down about 30% right now, which is one of the largest pullbacks it's had over the last decade.

Badger Meter is one that I just found for myself.