8. Linde plc (NASDAQ:LIN)
Dividend Yield as of December 29: 1.31%
Linde plc (NASDAQ:LIN) is a global multinational chemical company that provides a wide range of gases to industries like healthcare, manufacturing, energy, food and beverage, chemicals, and electronics. Despite facing ongoing economic challenges in the third quarter, the company delivered impressive results, with a 9% increase in earnings per share (EPS), a rise in return on capital (ROC) to 25.8%, and a 130 basis point improvement in operating margins, reaching 29.6%. In addition to managing its short-term performance, the company secured its largest-ever gas sale project, boosting its project backlog to $10 billion. This milestone supports future growth in the industrial gas sector while upholding the company’s disciplined investment approach. The stock has surged by nearly 3% in the past 12 months.
In Q3 2024, Linde plc (NASDAQ:LIN)’s revenue came in at $8.4 billion, which showed a 2.46% growth from the same period last year. The revenue also surpassed analysts’ expectations by $9.33 million. The company’s operating profit amounted to $2.1 billion, with an operating profit margin of 25%. Mar Vista Investment Partners, LLC mentioned LIN in its Q3 2024 investor letter. Here is what the firm has to say:
“Linde plc (NASDAQ:LIN) is the world’s largest, global industrial gas producer. The company enjoys the highest profit margins and returns on capital in the industry. Linde’s primary products are atmospheric gases and process gases. Industrial gases have benefitted from secular growth trends in decarbonization and carbon sequestration. Moreover, the opportunity in blue and green ammonia and hydrogen are substantial. Projects in these areas are quickly being added to its backlog for future growth. We see these secular trends as long-term positives for Linde and the entire industrial gas industry.
Linde believes it can grow its volumes with new applications; the buildout of small, on-site plants using its technologies; and focusing on growing geographies such as India, Malaysia, Vietnam, China and Brazil. Despite the long-term growth opportunities, recent demand trends have slowed due to weak global industrial production and a challenging year-over-year comparable. Among the regions, the U.S. remains resilient, with volumes flat to slightly negative. Europe, Latin America, the Middle East, and China are all sending mixed to negative economic signals. We believe these slower trends are transitory in nature, providing an opportunity to purchase shares in Linde at attractive prices.”
Linde plc (NASDAQ:LIN) is a reliable dividend payer, supported by its strong cash position. In the latest quarter, it reported an operating cash flow of $2.73 billion, an 8% increase from the previous year. Its free cash flow totaled $1.66 billion. During this period, the company returned $1.3 billion to shareholders through dividends and stock repurchases. It has maintained a 31-year record of consistent dividend growth, offering a quarterly dividend of $1.39 per share. With a dividend yield of 1.31% as of December 29, LIN is one of the best FTSE dividend stocks on our list.
As of the close of Q3 2024, 63 hedge funds held stakes in Linde plc (NASDAQ:LIN), the same as in the previous quarter, according to Insider Monkey’s database. These stakes have a consolidated value of over $3.6 billion.
