This “Super Compounder” Is Yielding 6%

A clerical error has allowed one of America’s fastest growing dividend stocks to go unnoticed… Until now.

TransDigm Group Incorporated ($TDG) is a company that manufactures niche aerospace components. And the majority of these components are proprietary products, with TransDigm being the sole supplier.

While some of these parts are highly technical, there is a TransDigm product you may recognize — the AmSafe seatbelt.

These are the seatbelts used on most commercial airliners and private jets.

TransDigm has a huge portfolio of these types of essential niche products, and this had paid-off remarkably well. TransDigm stock has drastically outperformed the S&P 500, delivering an average annual total return of 25.52% every year for the past 10 years.

And on top of this, TransDigm Group tends to pay an extremely high-yield annual dividend.

While the company doesn’t pay fixed, quarterly dividends the way a business like Coca-Cola does, TransDigm typically issues an annual special dividend. In 2024, for example, TransDigm stock paid a one-time special dividend of $75 per share.

And with a share price of around $1,200 for most of the year, this equated to a dividend yield of around 6.2%.