Having a near monopoly on an asset, process or commodity can mean big bucks for a company. Our latest Best Dividend Stocks Model Portfolio pick is just such a firm. As one of the few producers of industrial gasses in the world, our pick continues to see rising cash flow as the world’s economy grows and these ingredients become more specialized.
Its near monopoly comes from the specialized infrastructure needed to create, separate and process many of these products, providing plenty of barriers to entry from new participants. And thanks to M&A activity, the number of players in the industry continues to shrink.
Growth can be had from continued demand for more specialized gasses and overall better economic demand. And with the ability to pass on price increases – often many of these products are must-haves – our pick has been able to profit from inflationary pressures.
The end result is 40 years’ worth of dividend increases, a hefty 2.3% dividend yield, and plenty of buyback strength.
In addition to our industrial pick, we’ve added an apartment owner to the list and removed a regional bank and a packaging firm.
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
