Photo: Dutch Windmill
Koninklijke Philips Electronics NV (PHG) from Holland and Tomkins plc (TKS) from the UK are two industrial stocks from the S&P ADR Index.
Philips Electronics (PHG) is mainly a consumer electronics maker. The company is known worldwide for light bulbs, radio, televisions and other devices. Philips also makes many high-end devices for the medical industry.
PHG has a dividend yield of 3.59% and a PE of 7.43. The stock is almost 50% off the 52-week high of $45.57. The annual dividend growth for the past 5 years is about 14%.At current levels PHG seems to be inexpensive and is a good pick since it has a diversified portfolio of products in different fields. Philips is a highly famous brand in many developing countries.
Tomkins (TKS) is an engineering and manufacturing company with operations in industrial, automotive and building products.
TKS has a dividend yield of 8.03% but the stock is down about 43% in the past 52 weeks. It is a mid-size company with a market cap of about $2.5B. The demand for auto parts is falling and Tomkins took an impairment charge of $175M in July. With the British economy in recession and the demand for its products in decline, Tomkins is better avoided now. We will revisit this stock next year.
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