APD - Air Products And Chemicals: Low Volatility And Stellar Dividend Growth

2024-06-07 12:29:05 ET

Summary

• Air Products and Chemicals is a good choice for investors seeking low volatility and robust dividend growth.
• The company has a strong record of delivering solid return on invested capital and has several high target IRR projects in its pipeline.
• APD is undervalued by around 10% and has a positive outlook due to favorable industry trends and a strong project backlog.

Investment thesis

Air Products and Chemicals ( APD ) is a good choice for investors seeking for low volatility and robust dividend growth. As a leading player in its industry, the company is poised to capitalize on favorable secular trends. The company's long-term performance is exceptional, and so is the management's capital allocation approach. The company consistently delivers strong return on invested capital and has several multibillion projects in its pipeline with high target IRR. The last decade's dividend CAGR is 10%, which is another reason to buy the stock. My valuation analysis suggests that the stock is around 10% undervalued, making it a "Buy"....

For further details see: