rewrite this title and make it good for SEOIs Eaton Stock a Buy Now?

I subscribe to a key part of Warren Buffett’s strategy of holding investments for the long term.

I bought Eaton when it was out of favor, and I’ve benefited materially from the business’s growth.

However, the electrical-focused industrial giant’s historically low yield is an issue for me today.

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I bought Eaton (NYSE: ETN) in 2015. Over the roughly 10 years that I’ve owned it, the stock has risen by 530%. Over that same span of time, the S&P 500 index has risen just shy of 240%. After such a large advance, however, would I buy this electrical-focused industrial giant again now?

Not to toot my own horn or anything, but Eaton was a big win. The truth is, I got really lucky with my investment in Eaton. Trust me, not all of my investments work out that well. However, I can place some of the win here at the feet of Warren Buffett, the so-called Oracle of Omaha. His investment approach has been instrumental in my thinking.

From a big-picture perspective, Warren Buffett’s investment approach is simple. Buy well-run companies when they are attractively priced and then hold for the long term to benefit from the growth of those businesses over time. Buffett has his own way of picking stocks, but the broad framework can be used with just about any investing overlay. My overlay is dividend investing.

That’s how I found Eaton, which had a historically high dividend yield at the time I bought it. At the time, it was still integrating a very large acquisition (Cooper Industries) and had held its dividend steady after years of annual increases. I reasoned that it was just digesting a big deal and that its growth plan was solid. Effectively, it was attempting to shift its business more toward electrical products. This move proved prescient.

At this point, the company has exited a number of more cyclical business lines (like hydraulics), which has improved margins through the business cycle. And management expanded its exposure to electrical products to the point where they make up nearly 75% of the top line of the company’s income statement.

In other words, Eaton is more focused, more profitable, and larger. I have definitely benefited from the business’s growth over time. This growth, however, hasn’t gone unnoticed on Wall Street. When I bought the stock, the price-to-earnings (P/E) ratio was around 13. Today, the P/E ratio is 32. That’s in line with the stock’s five-year average P/E, but way above where I bought in.