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Insights & Manager Commentary

Brookmont:  A Good Example of Pricing Power (Highlighting UPS)

by Craig Love, on September 14, 2022

Are the alternatives to equities viable, and what securities are best positioned in this environment?

With sustained inflation and rising rates, bonds and cash do not provide an attractive investment for many investors. We believe that dividend growth stocks can act as an attractive option for investors in the current environment.

Dividend Growth Stocks display strong pricing power by having the ability to pass along costs to their customers and improve their margins through efficiency improvements brought on by technology.

The button below will take you to a written example of how UPS has been using technology to improve margins and pass along rising costs.
 
Brookmont Example of Pricing Power (UPS)
 

 

Source: Brookmont Capital Management

** This report is meant to inform the reader of our current market opinion, which we, as professional money managers, use in our decision-making. It should be noted that stock market and bond market data are subject to varying interpretations and any one interpretation will not necessarily guarantee investment success. The information obtained from the sources specified herein and used as basis for our current market opinion is believed reliable, but we do not guarantee the accuracy of such information.

Topics:Manager CommentaryBrookmont