Air Products & Chemicals, Inc. (APD), Airgas, Inc. (ARG): Should Investors Follow Bill Ackman Into This Dividend Payer?

Believe it or not, helium is integral to many functions of society and is completely irreplaceable. Helium is an important input across many industries, used in such functions as MRI scans, computer chips, and even military uses, like missile guidance.

Meanwhile, in all-too-typical fashion, Congress has failed to address the looming helium crisis. And, due to the 1996 Helium Privatization Act, the government will soon effectively be pushed out of the helium business altogether.

The looming helium shortage is already having a dramatic effect on prices.  According to the U.S. Government Accountability Office, prices for refined helium provided to end users soared from $40 per thousand cubic feet in 2000 to $160 in 2012.

My sneaking suspicion is that Ackman is essentially placing a bet on the global helium shortage. Dwindling supply and continued strong demand are likely to mean much higher prices going forward, which would be a boon for private-sector producers like Air Products.

As a result, Foolish investors may want to consider adding Air Products to their portfolios.

The article Should Investors Follow Bill Ackman Into This Dividend Payer? originally appeared on Fool.com is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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