Tap into rising infrastructure spending

Article Excerpt

Increased government spending on public infrastructure projects should spur demand for construction equipment and related services from these two dealers. That should also let them keep raising their dividends. FINNING INTERNATIONAL INC. $42 is a buy. The company (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 139.5 million; Market cap: $5.9 billion; Dividend yield: 2.6%; Dividend Sustainability Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Western Canada but also Chile, Argentina, Bolivia, the U.K. and Ireland. Its main customers are in the oil and gas, mining, forestry-products and construction industries. With the June 2024 payment, Finning raised your quarterly dividend by 10.0% to $0.275 from $0.25 a share. The new annual rate of $1.10 a share yields 2.6%. In the quarter ended June 30, 2024, revenue rose 3.5%, to $2.65 billion from $2.56 billion a year earlier. Revenues were higher due to the increased sale of new and used equipment, offset by flat service revenue. Earnings before one-time items decreased…