Why Air Products & Chemicals Deserves A Spot In Your Portfolio

(11min)

Summary

  • Air Products & Chemicals (APD) is a resilient Dividend Aristocrat with 41 consecutive years of dividend hikes and a 9% annual growth rate since 2014.
  • APD's strategic focus on core industrial gases and low-carbon hydrogen, supported by strong financials, positions it well for long-term growth.
  • Despite challenging market conditions, APD's valuation remains attractive, with a fair stock price estimate 20% above its current price.
  • APD's strong EBITDA margins, A-rated balance sheet, and strategic partnerships indicate a bright future for shareholders, with >10% annual returns expected.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »

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Introduction

On August 30, I wrote an article titled "Dividend Kings Are Overrated." In that article, I explained that although dividend consistency is a great thing, dividend stocks should never be selected based on Dividend Aristocrat

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This article was written by

42.89K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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