APD's strong historical dividend growth makes it suitable for long-term wealth and income building when purchased at reasonable valuations.
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So, the next one we're going to look at is a prize, another very high quality company. Now price is A-rated debt below 50% which I like. It's a minus rated. It offers a low dividend yield.
But look how fast the dividend has grown historically.
We'll go in the historical graph of a price and we see that the average dividend growth rate has been 27%. the compound growth rate has been 20%. So this company is raising that dividend.
So if you've got 10, 15, 20 years before retirement and you're looking for a company that can build wealth but also build income, then a stock like a price would foot the bill.
Now if you buy it when the valuation is reasonable, and we'll do that here, which is a comparable PE to what it's currently trading at, maybe a little current PE is 12.75. If I've hit it here at at a a PE of 12 and hold it to its normal PE ratio in this example, then this would have generated a 17% rate of return, but it would have also generated a significant dividend growth.
In other words, if you'd have bought this in 2026, you'd have started out with a 1% dividend yield. But if you held it all these years, by last year, your dividend yield was over 14% on your original purchase. That's how powerful fast dividend growth is.
What this channel has said about $APD
FAST Graphs has only this one call on this stock.