American Express Company (AXP), Mondelez International Inc (MDLZ): Gabelli Equity Income Picks

Airplane Duopoly

The Boeing Company (NYSE:BA) “is one of two manufacturers of large commercial aircraft. Over the next 20 years, the global passenger aircraft fleet is projected to double to approximately 40,000 airplanes, and roughly 34,000 new aircraft will be needed for industry growth and replacement.” Basically, Gabelli believes that Boeing is part of a duopoly and big industry sales are in the future.

Gabelli highlights The Boeing Company (NYSE:BA)’s commercial plane portfolio as giving airlines the flexibility to “choose the most cost effective jet for each flight.” That, in turn, should “enable Boeing to continue to capture a significant share of the future commercial aerospace market.”

Because of the types of products Boeing sells, its top and bottom lines can be a bit choppy. However, it has an enviable industry position and if Gabelli’s industry analysis is correct, the aircraft maker will have a solid book of business for years to come. The shares yield around 2% but have run up toward all time highs recently. Momentum investors might like the stock, though most would probably be better off waiting for a pull back.

Growth and Income

Gabelli Equity Income Fund pays a regular monthly dividend of three cents. That equates to a pretty small yield of around 1.3% recently. Investors willing to keep an eye on its holdings can cherry pick good names and earn a higher yield. Mondelez International Inc (NASDAQ:MDLZ) is probably the most timely option above, but the other two are definitely worth keeping an eye on.

The article Gabelli Equity Income Picks originally appeared on Fool.com and is written by Reuben Brewer.

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