SEMHF - Siemens: Three Reasons It Should Be High Up On Your Watch List

2024-06-28 13:48:05 ET

Summary

• Siemens AG is a globally and operationally well diversified conglomerate with robust earnings and cash flows.
• Management is shareholder friendly and yet has a prudent approach to portfolio- and balance sheet management.
• Siemens regularly spends more money on research and development than rivals such as ABB, Schneider Electric and Rockwell Automation, thereby remaining the market leader in many areas.
• Thanks to these characteristics - and several othersdiscussed in this article - Siemens stock remains a solid dividend growth play,despite the often misinterpreted dividend cut in 2020.

It has been a little over two years since I last covered the German industrial conglomerate Siemens AG ( OTCPK:SIEGY , OTCPK:SMAWF ). Back then, in early 2022, I concluded that the company was very well positioned in the context of current major trends such as energy transition and digitalization, but not cheap at the time of writing. However, against the backdrop of the Russian invasion of Ukraine, European stocks plunged and a short window of opportunity opened for investors who were willing to look past these uncertainties and who appreciated the fact that Siemens is a globally (Figure 1) and operationally diversified (Figure 2) conglomerate....

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