3M Co (MMM), United Technologies Corporation (UTX): Comglomerates Provide the Best Diversification

United Technologies Corporation (NYSE:UTX) offers the most bizarre grouping of companies in this article. Berkshire Hathaway and 3M Co (NYSE:MMM) are both so widespread that they operate almost everywhere while United Technologies are more focused on five divisions that are quite diverse in nature.

Those five different divisions are, however, doing quite well for United Technologies Corporation (NYSE:UTX). The company managed to sell $60 billion in product throughout 2012, and they generated close to $5 billion in profits from those sales.

And they are growing. The growth is at a little lower peg than some other companies out there, but let’s take a look anyway. Five-year revenue growth is at at a low rate of 1.1% per year, and EPS over that same time frame is at 4.7%.

It’s the dividend growth that really stands out at this company as over the last five years their annual payout has increased by around about 11.5% per year. They’ve actually boosted the dividend every year since 2005, that’s not too bad is it? The stock is currently yielding 2.3%, and I’d bet money that it’ll be growing soon.

Investor Takeaway

Buy them all! Each of these three companies has its own set of merits. All three, though, are projected to grow by the analysts that cover them.

If you are interested in dividends then I’d say United Technologies Corporation (NYSE:UTX) is your best buy at this point. The company has been giving their annual payout the boost since 2005, and you can hop in now before the next increase.

IF you are interested in overall diversity, Berkshire Hathaway is your go-to company.

The article Comglomerates Provide the Best Diversification originally appeared on Fool.com and is written by Ash Anderson.

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