E Daily Stock Pick: HeidelbergCement AG

I'm now looking for a third basic materials sector representative for my new Ivy portfolio.

That materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; gold; paper; silver; specialty chemicals; steel.

Today I'm reviewing a large-cap building materials firm, named HeidelbergCement AG. Its trading ticker symbol is HDELY.

HeidelbergCement AG operates in the building materials industry. Its product portfolio comprises of cement, aggregates,  ready-mixed concrete, and asphalt worldwide.

Its cement products include special cement with targeted characteristics, special geotechnical building materials, and a range of binders.

The company offers natural stone and crushed aggregates, including sand, gravel, stone chippings, and crushed stones; concrete/ready-mixed concrete that is used for the production of precast concrete parts, for use in the construction of tunnels or bridges, office buildings, and schools; and asphalt, which is primarily used in the building of traffic infrastructure, roads and such.

It also trades in cement, clinker, solid fuels, and other building materials; and purchases and delivers coal and petroleum coke through sea routes to other cement companies.

The company was founded in 1873 and is headquartered in Heidelberg, Germany.

I use three key data points to gauge the value of any dividend equity like HeidelbergCement AG:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.


Heidelberg's price per share closed at $13.68 yesterday. A year ago its price was $22.79. So price dropped $9.11 per share last year, or nearly 40%.

Assuming Heidelberg's stock trades in the range of $10 to $20 next year, Heidelberg's recent $13.68 price could move up by $1.32 and grow to $15.00 by late-January, 2020.

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