TRMB - 3 Infrastructure Stocks You Can Buy and Hold for the Next Decade
Demand for infrastructure comes from two primary sources. First is the need to upgrade developed world infrastructure. Second is the need for the developing world to build out new infrastructure to support economic growth. Both are powerful long-term revenue drivers and will drive growth at an infrastructure ETF like the iShares Global Infrastructure ETF (NASDAQ: IGF) , a construction equipment company like Caterpillar (NYSE: CAT) , and industrial technology company Trimble (NASDAQ: TRMB) . Here's why.
The iShares Global Infrastructure ETF is an excellent way to get broad-based exposure to the segment. While other infrastructure ETFs invest solely in U.S. companies or have heavy exposure to media and communications companies, the iShares offering focuses on global infrastructure holdings. Nearly all of its investments are in utilities, transportations stocks, and energy -- toll road companies, energy pipelines, airport operators, power companies, etc.
It's a pure-play global infrastructure investment, so it offers exposure to both of the themes outlined in the introduction. In addition, given that many infrastructure companies tend to be relatively mature and cash generative, the ETF manages to pay a healthy dividend (current yield is 2.7%) while offering the prospect of long-term capital gains. As a result, I think it's the best all-around infrastructure ETF.
For further details see:
3 Infrastructure Stocks You Can Buy and Hold for the Next Decade