With any industrial name that you plan to hold long term you have to expect both boom and bust cycles as that's
the nature of cyclical stocks.
Not exact matches
Shell Oil has more excess profit at its disposal to fund future dividend growth than AT&T does (although AT&T is a non-
cyclical stock that can rely upon steady cash flow from which to pay shareholders each year, whereas Royal Dutch Shell is an oil company that experiences low profits for 2 - 3 out
of every ten due to the
cyclical nature of oil and natural gas prices).
The undervalued industries were mostly
cyclical in
nature, while the overvalued industries were not, supporting the idea
of this Wall Street Journal article, which argues that
cyclical stocks are looking relatively cheap.
Although you're looking at
cyclical results by the very
nature of the business models, many
of those
stocks out there with 40 or 50 consecutive years
of dividend increases hail from that sector
of the economy.
Yield is slightly higher than the market's, but the highly
cyclical nature of the
stocks in the materials group makes the sector an unlikely choice for income seekers.
Again, given the
cyclical nature of the
stock market, the ability to predict growth with any degree
of certainty is impossible.
Shell Oil has more excess profit at its disposal to fund future dividend growth than AT&T does (although AT&T is a non-
cyclical stock that can rely upon steady cash flow from which to pay shareholders each year, whereas Royal Dutch Shell is an oil company that experiences low profits for 2 - 3 out
of every ten due to the
cyclical nature of oil and natural gas prices).
Price developed his investment philosophy in the 1930s, when the prevailing approach was to jump in and out
of stocks based on the
cyclical nature of the
stock market.