#7 - Air Products & Chemicals (NYSE:APD)
Air Products & Chemicals (NYSE: APD) first got on my radar for its double-digit dividend growth. But there's an undervaluation at work here that growth-minded investors should consider.
APD is part of the industrial gases sector. It is leading the global transition to clean energy. One of the ways this is most evident is in its efforts to produce clean hydrogen at scale. The payoff on that investment could take years. However, Air Products & Chemicals is also a leader in synthetic gas (syngas) solutions, including a recent $1 billion acquisition of a processing facility in Uzbekistan that converts natural gas to syngas.
Unlike the other stocks on this list, APD stock is down in the last 12 months. However, the APD analyst ratings on MarketBeat forecast a 23% upside for the stock. That would go along nicely with a 3% yield on a dividend that has been increasing for 49 years.
About Air Products and Chemicals
Air Products and Chemicals, Inc provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals.
Read More - Current Price
- $331.83
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 12 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $331.53 (0.1% Downside)
Investment in the AI sector is expected to reach $200 billion by 2025. With that many dollars flowing into the sector, many investors wonder if they can afford not to be in AI.
Nvidia is undoubtedly the name inducing the most FOMO in the market. However, there are several other AI stocks that have made strong moves in 2024. Some of those names include Taiwan Semiconductor Manufacturing Company (NYSE: TSM)and Arm Holdings plc (NASDAQ: ARM). Even a penny stock like SoundHound AI Inc. (NASDAQ: SOUN) has nearly tripled in the first two months of 2024. And let's not forget Advanced Micro Devices, Inc. (NASDAQ: AMD), which may be the most significant immediate competitor to Nvidia's dominance.
But that still doesn't mean you should put all your eggs into one basket. The stocks in this presentation are not "defensive stocks" per se. However, they can help shield your portfolio from having too much exposure to technology stocks in general and artificial intelligence stocks in particular.
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