As European governments launch packages of financial support to protect businesses from spiralling costs, Guinness Global Investors' Nick Edwards is eyeing industrial stocks enabling efficiency across the region, and shunning likely targets of dividend culls.
According to Edwards, manager of the $6.7m Guinness European Equity Income strategy, the market has been pushing down industrial companies of late, throwing up entry points for those seeking reliable businesses cheap, some of which hold strong recurring revenues due to large installed bases that require servicing. Such holdings in the equally weighted portfolio include Schneider Electric, sustainable mining equipment supplier Epiroc, automation and electrical equipment supply ABB and Deutsche Post. According to Edwards, while firms like ABB are exposed to process industries hampered b...
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