The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.
Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow Jones Industrial Average. Today, they're checking out United Technologies. This company is down around about 1% in 2012, compared with a 4% or so gain for the Dow average as a whole. David said he thought United Technologies would outperform the market over a five-year period. So far, it's lagging behind. The stock has tapered off a bit over the past few months, and that could be the result of some fear over a global economic slowdown that's caused the stocks of Honeywell and Eaton to fall, too.
David is sticking with his outperform call. United Technologies is a leader in a number of different industries, from elevators to aircraft engines. And it generates lots of cash flow from those businesses. It sports a 2.9% yield, and the dividend should continue to grow around 10% per year. That's a recipe to beat the market.
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