Mike,
you wrote -
"2. Dividend growth will be more important in the future. It has been important in the past, but, with so many large stocks marching in lockstep, payout money will become as or more important than appreciation money. Make certain, I am saying dividend growth and not large DIVIDENDS. High yield stocks are often moribund companies. But those who try to increase DIVIDENDS often are the true growth stocks."
That makes a lot of sense, but now finding a company that fits the bill.
Check out ABB. Kind of the GE of Europe but without all the silly side businesses. Electrical power transmission and smart grid technology gives this one a shade of green. Lots of work in china where they are doing some interesting things that we here in the USA can only dream of, such as long distance, very high voltage DC lines running 1200 miles with only 7% losses as well as train electrification(Switzerland, HQ of ABB has all their rail electrified). They only recently announced a energy storage(think UPS systems), which may or may not incorporate ALTI's battery cells. This dovetails with the intermittency of renewables like wind and solar.
And best of all might be their dividend record. Despite the downturn ABB is giving the biggest dividend ever, while GE's has been dramatically cut. And it's not paying huge dividends - only 2.5%. I see this as a nice mix of dividend and appreciation.
You can eyeball their latest presentation given at a Goldman Sachs Capital Goods conference back in June here:
tiny.cc
See any warts here?
craig |
