Is ABB the "Go To" Robotics Stock?
In many ways, ABB (NYSE: ABB) stock looks like an attractive proposition for investors. First, ABB's one of the largest robotics companies in the world, and gives you direct exposure to a long-term growth market. Second, its shares currently sport a dividend that yields in excess of 4% -- a handy feature to have while you ride out the cyclicality of the robotics/automation market. Let's take a look at what investors need to know before they make a decision about buying in.
There's no way to get around it, if you're adding ABB to your portfolio for its dividend, then you're buying into the idea that the company will achieve its growth aspirations. This isn't a slow-growing cash cow with a well-covered dividend; in fact, it operates in some highly competitive markets including industrial automation, electrification, and robotics. In other words, it needs to innovate just to stand still against competitors like Siemens, Rockwell Automation, Honeywell and Eaton.
ABB's exposure to robotics in automotive production is hurting it in 2019. Image source: Getty Images.
Source Fool.com
