Air Products & Chemicals, Inc. (NYSE:APD)

Maybe a stronger choice than PX?

fstg experiment

cutting edge

Unedited excerpt from a CAPSCall article anticipated for publication on 06-FEB-2013:

The next selection for the Inflation-Protected Income Growth Portfolio is one of the few companies in the world that has figured out how to profitably sell air, Air Products & Chemicals (NYSE: APD). Part of a triumvirate of air chemical companies that also includes Praxair (NYSE: PX) and Airgas (NYSE: ARG), Air Products and Chemicals has the best overall fit among its peers for this real money portfolio.

With a 30 year history of growing its dividend, a reasonable payout ratio, and decent forward looking prospects, it’s the kind of company that looks capable of helping investors breathe easier. And if for some reason it doesn’t help them breathe easier financially, at least it does offer medical grade oxygen to help them physically breathe easier.

helium

This company does several things, but I'm focusing in on LNG technology via the most used C3MR (APCI) process for natural gas to liquified natural gas conversion. LNG is an obvious choice for U.S. companies to use to tap into much higher margin markets, such as Asia. Natural gas is near historic lows, with production being cut, and a greater focus on exportation. Thus, I see this as one of several ways to tap into the large profit potential with natural gas in the next several years. Particularly as unstable oil supplies continue to cause gas and other petrol products to skyrocket, natural gas will become a more attractive alternative.

12/14

Merrill Lynch target price of $100 and a respectable dividend. I'll continue to hold on long.

solid growth and decent dividend.

HIGH DIVIDENDS AS BONDS PLUMMET

Speciality gasses are used everywhere, so there is a wide market for their wares.

Dividends have been inching up for years.

There are only 4 major global industrial gas producers in the World. Every human endeavor requires industrial gas. The barriers to entry are very high as the industry is very capital intensive. AP is well positioned in Asia and has excellent management

great fundamentals, great play on helium.

http://www.fivecentnickel.com/2011/01/10/investing-in-the-dividend-champions/

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. The current dividend yield of Air Products and Chemicals is about 2.4%. Current ROE is 20% and the stock is trading for just 15 times expected earnings.

great company with rising dividend

As we move to hydrogen, they will move it around.

Helium, Bitch!

Air Products and Chemicals is THE MAJOR PLAYER worldwide for Hydrogen Technology and Fueling.
Hydrogen fuel cells are NON-polluting with distilled water being its by-product.
Many scientists believe Hydrogen fuel cells will become the source of electricity for heating/cooling our homes as well as the power source for automobiles.

APD already has Hydroden fueling stations in Maryland and California and even tested a Mobile Hydrogen Fueling Station last summer in a cross-country trial of Hydrogen Fuel Cell-powered cars.