Siemens (SI-N)

Because it is capital equipment, has tended to suffer with concerns about growth. It now looks to be breaking out. Got hit very badly in the recession but it did hit a new all-time high early 2011. If people are more at ease with the outlook for Chinese growth, this is a major provider of industrial equipment to emerging economies.

Good company with a rising dividend. Average earnings growth for the last 5 years has been 5%, which is indicative of a very large infrastructure company similar to General Electrics, etc. You get cash flow growth on a consistent basis. 5-year dividend average growth is 19%, which is almost 3 times what the norm is. If the economy doesn’t recover, then you are going to have some bumps and it could just go sideways.

Solid company. The only question he would have is the timing at this particular stage. Wouldn’t favour a portfolio that is heavily weighted industrial oriented at this point. He expects very slow levels of global economic growth. Not a typical environment where an industrial stock would do particularly well. You could probably get it cheaper and it won’t grow dramatically until there is better global growth.