Dividend Aristocrats In Focus: Linde Plc

The Dividend Aristocrats are among the highest-quality dividend growth stocks in the entire stock market. For this reason, we individually review every Dividend Aristocrat each year.

The 2019 series concludes with Linde plc (LIN), which qualifies on the list as a result of its acquisition of Praxair, a former Dividend Aristocrat.

Linde is an industry leader with a highly profitable business and a solid 2.1% dividend yield. The Praxair acquisition should be a meaningful growth catalyst for many years to come. As a result, we view Linde favorably as a dividend growth stock.

Business Overview

Linde plc, which was created through the merger of Linde AG and Praxair, is the world’s largest industrial gas corporation. Linde AG is headquartered in Munich, Germany. The company produces, sells, and distributes atmospheric, process, and specialty gases, along with high-performance surface coatings.

Linde is a global supplier of industrial, process, and specialty gases. Linde products and services can be found in nearly every industry, in more than 100 countries around the world. Last year, Linde generated sales of approximately $19 billion.

The company operates in two core divisions: Industrial Gases & Healthcare; and Engineering.

Linde gases are used in a variety of industries, including energy, steel production, chemical processing, environmental protection, food processing, electronics, and more. The company also has a healthcare business consisting of medical gases and services.

Linde’s Engineering division focuses on market segments such as olefin, natural gas, air separation, hydrogen, and synthesis gas plants. It is involved in the planning, project development, and construction of industrial plants.

Linde has performed well in recent periods.

(Click on image to enlarge)

LIN Overview

Source: Investor Presentation

Through the first three quarters of 2018, Linde’s total revenue increased 4.8% from the same period the previous year. Operating profit increased 9% in the nine-month period, thanks to revenue growth as well as 140-basis point operating margin expansion.

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