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ABM Industries: Don't Underestimate This Dividend King

Published Sun, 22 Nov 2020 06:33:55 -0500 on Seeking Alpha

Seeking AlphaDividend Ideas | Services ABM Industries: Don't Underestimate This Dividend KingNov. 22, 2020 6:33 AM ET|| About: ABM Industries Incorporated (ABM)by: Gen AlphaGen Alpha Long Only, Value, Growth, Growth At Reasonable PriceSummaryABM Industries is weathering the current environment fairly well, and its variable cost structure provides the company with flexibility.
The company has already hit its annual plan for new business, and its "EnhancedClean" solution should be a solid revenue driver.
ABM has a long track record of paying a growing dividend, and maintains a sound debt profile.
It’s been almost three months since I last visited ABM Industries (ABM), and since then, the stock has moved up by just 0.9% (1.4% total return including dividends). I continue to have a bullish view of the stock, given tailwinds that I see from increased cleaning measures due to COVID-19. In this article, I consider both the pros and cons, and evaluate what makes this stock a continued attractive investment at the current level, so let’s get started.

(Source: Company website)
A Look Into ABM
ABM Industries is a leading global company that provides a variety of services to nearly every industry. Its services include facilities maintenance/engineering, HVAC & mechanical, data center maintenance, janitorial, and parking & transportation. It employs more than 140K people, and operates in the U.S. and more than 20 international locations. The company first started in 1909 as a modest window cleaning business. Today, it generates over $6.4 billion in annual revenues, operates out of 350+ locations globally, and has over 20K clients.
As seen below, ABM provides essential services in the areas of electrical, facilities engineering, and HVAC & mechanical, which helps business and institutions run smoothly. Half of ABM’s business is tied to businesses and industry, with the remainder being associated with technical solutions... Read more