Praxair, Inc. (NYSE:PX)

CAPS Rating: 5 out of 5

The Company is the industrial gases supplier in North and South America, is rapidly growing in Asia, and has strong, well-established businesses in Europe.


Player Avatar mrindependent (35.94) Submitted: 10/4/2010 3:06:27 PM : Outperform Start Price: $87.17 PX Score: +6.57

This stock qualifies for my high stable dividends screen, which typically outperforms the S&P 500 by more than 10% per year. The idea of the screen is to look for stocks that meet the following criteria: (1) dividend yields above 2% (2) stock seems undervalued and (3) dividend appears to be sustainable or growing. I think that Mr. Market will reward this type of stock in the near future as investors flee bonds in search of higher yields. Stable stocks should look appealing given the uncertain economic future for developed economies. The current dividend yield of Praxair is about 2.0%. Current ROE is 24% and the stock is trading for 19 times expected earnings. The current payout ratio is 0.4 and the five year average payout ratio is 0.1

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