DuPont Diversification the Right Move

We have been recommending DuPont (DD) since last May, based on the company's transformation from a cyclical chemical company into a science-based conglomerate with a focus on agriculture, bio-based industrials and advanced materials.

Our thesis has been that as the company's portfolio of businesses improves it will generate higher and more consistent returns and be rewarded with a higher multiple and share price. Everything we heard at last week's investor day increased our conviction that CEO Ellen Kullman has the company on the right path and is keenly focused on improving shareholder returns.  Significantly, she reaffirmed the long term sales and earnings growth targets of 7% and 12% and said that dividend growth would be in line with earnings growth....357 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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