Linde PLC (LIN)

It got downgraded the other day, yet shares went up. LIN is essential to green hydrogen and other businesses. It annoys him that it was downgraded because the analyst saw this ending cyclically, but he feels this will grow organically.

Industrial gases. Industrial, healthcare, food services. Bond proxy. Take or pay on long contracts. Very well managed. Hydrogen exposure for ESG investing. Safe and steady. Yield is 1.34%. (Analysts’ price target is $342.39)

Leading global player in industrial gases. Used in healthcare, food and beverage, and electronics, all of which are quite resilient. Growth of 10%, no matter the economic cycle. Well positioned moving forward in green infrastructure. Long-term contracts. Yield is 1.42%. (Analysts’ price target is $338.97)

A Linde competitor badly missed today, so he reacted by wanting to sell. Wrong! This is lazy thinking based on emotion. Linde is well-run. He's holding onto it, instead. Don't let emotion rule your trading.

gas is critical to many industries, from health to chemicals. It's recession-resilient. They continue to grow double digits. They have a stake in clean energy, too, in liquid hydrogen in South Korea. (Analysts’ price target is $332.25)

They have a tailwind as we move away from fossil fuels.

Likes it a lot. In the material space, which is part of the cyclical upswing you want to be involved in. An underowned name. Had been underperforming, but now seeing a bit of a turnaround. Decent dividend of 1.7%.

The largest industrial gas company in the world with 24% global share. Almost in an oligopoly. Industrial gas is critical for many end markets and applications. 40% of the business is very recession resistant. Applications in electronics, health care and clean energy. Valuation is reasonable. Expects to increase earnings by double digits and dividend is expected to increase annually. (Analysts’ price target is $293.58)

Green energy stocks have been hot. If you want a safe way to play hydrogen power then play LIN. It's the world's largest industrial gas distributor. In recent weeks, LIN has announced it will bring hydrogen infrastructure to South Korea, which is committed to green hydrogen. They are the leading player in industrial gas which is thriving now. LIN reported a big revenue beat last Friday just after announcing a 10% dividend hike and a $5 billion share buyback program. Stock is down 6% from highs last month.

The company is effectively a global tax on industrial production. They provide CO2 for sodas, oxygen to hospitals, hydrogen for steel, etc. The dividend continues to grow at 10%+ per annum. A slow and steady company that is very defensive. (Analysts’ price target is $284.19)