Summary
- I love investing in companies that people overlook. They often produce "boring" products and lack the hype.
- In this article, I analyzed PPG Industries which is a company that manufactures coatings. It is on its way to becoming a dividend king and you probably never heard of.
- After analyzing the fundamentals, valuation, growth opportunities, and risks, I found an attractive candidate for your dividend growth portfolio.
Introduction
I am looking for several sectors to which I lack exposure. Consumer staples, information technology, and industrials are the three sectors. I try to balance my portfolio and make sure it has decent exposure to all the sectors of the economy. In previous articles, I analyzed several consumer staples companies and initiated a position in Archer Daniels Midland (ADM). This time, I am looking at PPG Industries (PPG).
PPG Industries is a company that will probably go under the radar of most investors. It is not the largest company in its industry in terms of market share, and its products are "boring". Underneath it, there is a dividend aristocrat with an amazing streak of 47 years of a growing dividend. The lack of hype around the stock may be able to allow us to acquire it for a more decent price.
In this article, I analyzed PPG using my methodology as described in the graph below. I looked at the fundamentals, valuation, growth opportunities, and risks. I found a company that although suffered from stagnated earnings growth in the past three years, has found its path for growth and has several additional growth opportunities in the futures.
