Commodity prices continue to rise on the lack of supply while still seeing rising demand. For our latest Best Dividend Protection Stocks Model Portfolio pick, this surge in commodity pricing has boosted its bottom line tremendously. Particularly, when you consider that our pick has a near monopoly on the must-have commodities it produces!
Our pick is one of the few producers of industrial gasses in the world. It takes a hefty amount of specialized infrastructure needed to create, separate and process many of these products. Because of this, the industry comes with a high barrier of entry for new participants. And with M&A, the number of players in the industry continues to shrink. This has helped our pick use its size and scope to its advantage.
Moreover, many of these products are “must-haves.” Even in bad times, many firms using our pick’s products need to have them in order to function. Add in a hefty demand for specialized gasses and you have a recipe for success. One that has driven dividend growth and buybacks at our pick for nearly four decades. All in all, our pick’s position provides plenty of safety and makes an ideal choice for conservative investors.
In order to make room for our materials stock, we’ve been forced to remove an insurance company from the portfolio.
You can check out the Best Dividend Protection Stocks Model Portfolio to explore all the stocks.
