11 Best Materials Stocks to Buy According to Hedge Funds

4. Linde plc (NASDAQ:LIN)

Number of Hedge Fund Holders: 70

Linde plc (NASDAQ:LIN) is the world’s biggest industrial gas provider, operating in over 100 different countries. The company’s primary products include equipment for industrial gas production, process gases (such as hydrogen, carbon dioxide, and helium), and atmospheric gases (such as oxygen, nitrogen, and argon). It provides services to various end markets, including steelmaking, manufacturing, chemicals, and healthcare. In 2024, the firm made around $33 billion in revenue. It is among the best materials stocks.

In 2024, the business achieved impressive success, investing $2 billion in the DOW (Canada) project for low-carbon (blue) hydrogen generation and landing over 59 modest on-site contracts for sustainable energy provision. Over 40% of Linde plc (NASDAQ:LIN)’s overall power consumption is now low-carbon, with the company increasing its active low-carbon and renewable energy usage by 19% year over year. The business made $4.8 billion in total investments in its operations. The operating margin improved to 29.5%, a 190-basis-point improvement from 2023, while annual sales hit $33 million, a modest increase from $32 million in 2023.

In 2024, Linde plc (NASDAQ:LIN) generated a healthy $9.4 billion operating cash flow. After deducting new issuances, the firm disbursed $7.1 billion to shareholders in dividends and share repurchases and set aside $4.5 billion for capital expenditures. For the last 31 years in a row, the company has been paying out growing dividends to its stockholders.