Sunday, November 23, 2014

Build Your Portfolio with Infrastructure Stocks

On 60 Minutes this evening, the prime story was about how the United States is in desperate need of infrastructure rebuilding. Highways are falling apart, bridges are falling apart, and it's not just roads and bridges. It includes seaports and airports and dams and canals.

The biggest problem is getting funding, and the government is still fighting over how to pay for infrastructure rebuilding. At some point, funding will be available, it will have to be available, and when that happens, the companies involved in infrastructure building and repairs with benefit.

There are more than half a dozen publicly traded infrastructure stocks, according to the free list of infrastructure stocks at The stocks are in the business of providing supplies, building and repairing, and consulting.

One of the major beneficiaries of infrastructure rebuilding is Granite Construction  (GVA), which is involved in heavy civil contracting and producing construction materials. It repairs and builds roads, highways, bridges, and other infrastructure projects. The stock trades at 16.8 times forward earnings, and earnings for the latest quarter were up 17.2% year over year on a slight drop in revenues. The stock sports a yield of 1.5%.

AECOM Technology (ACM) provides technical and management services, including transportation design, water services, and facilities construction. The company recently took over URS Corporation, which provides engineering, consulting, and construction services for highway, air, and rail transportation networks, and ports and harbors. The stock has a price to earnings ratio of 14.5, and a forward PE of 9.5. Revenues for the latest quarter were up 23.3%, however, earnings were down 16.4%.

To access other top infrastructure stocks, go to the free list at, which has information on the PE, forward PE, PEG, and yield.

Author does not own any of the above.


Monthly Dividend Stock List

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