Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dividend Aristocrats Part 40: Air Products & Chemicals, Inc. (APD)

Page 1 of 2

Air Products & Chemicals, Inc. (NYSE:APD) is an industry leader. The company is the largest supplier of hydrogen and helium gas in the world.

Air Products also enjoys a considerable level of support from smart money investors. According to our data, 77 of some of the world’s best money managers own shares of the company as of the end of September, amassing nearly 29% of its outstanding stock. Bill Ackman of Pershig Square is one of the Air Products’ biggest fans, holding 20.55 million shares of the company, according to Pershing Square’s latest 13F filing.

The infographic below shows the size and history of APD:

APD Infographic
Source: December 2015 Citi Presentation, slide 3

The company also supplies oxygen and nitrogen, among other atmospheric, process, and specialty gases.

APD Dividend Analysis

APD has increased its dividend payments for 38 consecutive years, making it a Dividend Aristocrat.

The image below shows the company’s dividend history since 1983

APD Dividend History

APD currently has a payout ratio of about 50%. The company’s reasonable payout ratio, long dividend streak, and stable business model (which will be discussed later in this article) make it very likely APD will continue paying rising dividends.

The company currently has a dividend yield of 2.6%, which is about 0.5 percentage points higher than the S&P 500’s current dividend yield of 2.1%.

The company’s dividend yield has fluctuated between a low of 1.3% and a high of 4.2% since 1983:

APD Dividend Yield History

APD’s yield rarely rises above 3%. The company’s average dividend yield over the last ~30 years is 2.2%; APD is trading a bit above its historical average dividend yield at current prices.

Business Overview

APD’s operations are divided into four segments. The percentage of total adjusted EBITDA each segment generates is show below:

– Industrial Gases – Americas: 42% of adjusted EBITDA

– Industrial Gases – EMEA: 19% of adjusted EBITDA*

– Industrial Gases – Asia: 21% of adjusted EBITDA

– Materials Technologies: 19% of adjusted EBITDA

*Note: EMEA stands for Europe, Middle East, & Africa

The company’s operations are well diversified internationally.

The image below shows APD’s EBITDA by region. As you can see, the company generates more EBITDA outside North America than inside North America:

APD Global Presence
Source: December 2015 Citi Presentation, slide 6

Follow Air Products & Chemicals Inc (NYSE:APD)
Trade (NYSE:APD) Now!
Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!