Picks & shovels: It’s an amazing way to make money. Firms that supply the basic materials and goods needed for other firms to make value-added products can be cash cows for their investors. And if many of your major end markets happened to be in boom times, all the better. And that’s just what is happening for our latest Best Dividend Growth Stocks Model addition!
You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.
Our pick is one of the largest metals servicing firms in the nation. This is a unique niche in that it doesn’t operate mills, and instead takes finished steel, aluminum and brass and transforms them to meet customer requirements. Through processing the metals, our pick is able to score higher margins. Meanwhile, its vast network of warehouses and facilities has made it a superstar in the current supply-constrained environment. It continues to gather business, thanks to its focus on just-in-time manufacturing processes.
And speaking of the businesses it services – the aerospace, infrastructure and semiconductor/electronics sectors all remain very much in bull market mode. This has continued to boost our pick’s bottom line as well as its dividend over the last few years.
All in all, our stock selection makes for a strong under-the-radar choice for plenty of dividend growth.
In order to make room for our metals pick, we’ve been forced to remove a diversified healthcare stock from the portfolio.
