Why Air Products & Chemicals, Inc. (APD)’s Stock Is Worth Owning

Air Products & Chemicals has the highest dividend yield of the group, which is an important consideration for this dividend-focused portfolio. With the lightest debt-to-equity ratio, it also is at the lowest risk of leverage-related failure — though none of the three look to be carrying outrageous debt levels.

While both Airgas and Praxair have lower payout ratios and higher anticipated growth rates, Air Products & Chemicals’ levels are reasonable. Indeed, with both a lower estimated growth rate and lower price-to-earnings ratio, in some sense, Air Products & Chemicals has a lower hurdle to clear to meet expectations.

Put it all together, and it means that among its peers, Air Products & Chemicals looks like the best overall fit for this portfolio.

What are the risks?
Of course, no investment is without risk. In Air Products & Chemicals’ case, one of the biggest risks is that of explosion. When your primary business line revolves around explosive or otherwise combustible gasses, it’s an ever-present industrial hazard. Fortunately, Air Products & Chemicals takes that risk incredibly seriously and has compiled what it calls the best safety record in the chemical industry.

The article Why Air Products & Chemicals’ Stock Is Worth Owning originally appeared on Fool.com and is written by Chuck Saletta.

Chuck Saletta has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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