- HeidelbergCement is a top global player in aggregates and ready-mix concrete and the second largest in cement.
- The stock is yielding ~3%, with strong DPS growth potential.
- The pillars of the dividend thesis are the sharp revenue recovery after the pandemic-induced softness, copious cash flow coupled with decent earnings quality, portfolio recalibration, deleveraging, and buybacks.
- The company is valued at Enterprise Value/EBITDA (Forward) of just 5.8x, with an FCF yield of 14.7%, which is exceedingly cheap.
For further details see:
HeidelbergCement: 3% Yielding Cement Market Heavyweight For A DGI Portfolio