Albany International Is Highly Profitable And The Balance Sheet Is Very Strong

Summary

• Albany International is well-prepared to face inflationary pressures and potential recession due to its strong balance sheet and leading market position.
• The company's recent decline in share price presents a good opportunity for conservative dividend growth investors, but averaging down is recommended due to high operational volatility.
• The dividend is safe as the cash payout ratio is very low.
• Risks include prolonged inflationary pressures, a potential recession impacting demand, and the management's use of the company's significant cash reserves.

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Investment thesis

Albany International (NYSE:AIN) is a company whose shares can be held for decades due to its leading position in the markets it operates, as well as its conservative use of cash and shareholder-friendly management. The company is

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.