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Would you like to own a piece of one of the highest-quality businesses in the world? Want to profit from the manufacturing process for just about... well, anything? Like the idea of collecting a market-beating dividend that's growing at a double-digit rate?
I want to tell you about a high-quality stock that pays big, growing, reliable dividends. These growing dividends are funded by growing profit, because this business is producing and supplying industrial gases.
The stock looks undervalued right now. Price is what you pay. But value is what you get.
Air Products & Chemicals, Inc. - stock ticker APD - is a major global producer and supplier of industrial gases. They’re the largest supplier of hydrogen and helium in the world. Founded in 1940, Air Products & Chemicals is now a $56 billion (by market cap) industrial gases
behemoth that employs approximately 19,000 people.
I valued shares using a dividend discount model analysis. I factored in a 10% discount rate and a long-term dividend growth rate of 8%. This DGR is at the very high end of what I ordinarily allow for. The DDM analysis gives me a fair value of $324.00. I find it to be a fairly accurate way to value dividend growth stocks.
Morningstar rates APD as a 3-star stock, with a fair value estimate of $305.00.
CFRA rates APD as a 5-star "STRONG BUY", with a 12-month target price of $320.00.
We have a fairly tight consensus here. Averaging the three numbers out gives us a final valuation of $316.33, which would indicate the stock is possibly 25% undervalued.
Here's the bottom line, guys: Air Products & Chemicals, Inc. is an ultra high-quality company that is one of the best dividend stocks and positioned to take advantage of both short-term growth catalysts and secular growth tailwinds. With a market-beating dividend, almost 40 consecutive years of dividend raises, a well-covered dividend, consistent double-digit dividend growth, and the potential that shares are 25% undervalued, this stock should be carefully considered by every dividend growth investor as one of the best stocks to buy now.
Please note: I’m not a registered financial advisor and the ideas I talk about in these videos aren’t specific recommendations for you as an individual. Everyone has different financial situations, risk tolerance, goals, time frames, etc. You should also be aware that some of the trade details (specifically stock prices and options premiums) are certain to change from the time I place my trade or do my research, to the time I film the video, to the time it gets edited, to the time it gets published… and to the time you’re watching this video! So PLEASE, don’t attempt to make this trade yourself without first doing your own due diligence and research.
Please give us a like if you enjoy today's video, and make sure to subscribe to the channel and ring the notification bell so that you don't miss out on new content. Also, I've made my portfolio entirely accessible over at Patreon – and I post alerts there whenever I buy or sell a stock. This six-figure portfolio, which I call the FIRE Fund, generates enough passive dividend income for me to live off of. It allowed me to retire in my early 30s. I put my money where my mouth is and am often invested in the same high-quality dividend growth stocks that I make videos on. Over the years, I've heard from thousands of investors who have been profiting from the same exact stocks I own. If you think you could benefit from this as well, check out the following link to see my portfolio and start getting my buy and sell alerts: https://patreon.com/jasonfieber
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#BestStocktoBuy #DividendStock #CheapStocks
LEGAL DISCLAIMER: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose your entire investment. If your money is not FDIC insured, it may decline in value. Greg is not a licensed financial advisor, tax professional, or stock broker and he does not purport to be.
OPTIONS DISCLAIMER: Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, firstname.lastname@example.org.