3 Safe Industrial Stocks That Will Pay You Passive Income for Years
Investors looking for a safe, reliable income stream should look no further than package handler UPS (NYSE: UPS); aerospace and defense giant Raytheon Technologies (NYSE: RTX); and heating, ventilation, air conditioning, and refrigeration (HVACR) parts distributor Watsco (NYSE: WSO). All three have dominant market positions and offer the prospect of many years of dividend hikes ahead.
The case for buying UPS isn't only based on its leading position in package delivery; it's also about how UPS maximizes the profitability in its end markets. It's a common error to assume that because Amazon is building out its own network, UPS will suffer.
The reality is that there's enough demand to go around, and UPS's current strategy reflects that. Instead of chasing delivery volume for volume's sake, UPS's transformational strategy of focusing on developing business with targeted end markets (such as small and medium-sized businesses, healthcare, business-to-business e-commerce, and high-growth international business) is proving highly successful.
Source Fool.com
