Conservative · Stocks to Consider and Updates

ABB Wins Contracts

Electrification and industrial automation company ABB, Ltd. (NYSE: ABB – $23.51) said that it has won a $174.8 million contract to supply power to Genting Hong Kong Ltd.’s next generation of cruise vessels. The Swiss engineering company said it will power six vessels, each 938 feet long. The new ships will be powered by ABB’s Azipod electric propulsion system, which has become the cruise industry standard since its launch in 1990. The vessels are expected to be delivered in the 2023-24 period. In addition, ABB has signed a four-year framework contract worth more than $100 million with Italy’s transmission system operator Terna, which is responsible for securing and dispatching electricity throughout the country. Terna will utilize advanced technology from ABB to strengthen Italy’s power grid. The contract includes the supply of ABB’s gas-insulated switchgear, a solution that enables a significant reduction of equipment footprint to just one tenth of the space occupied by air-insulated switchgear substations.

       Shares of ABB have underperformed since entering the conservative portfolio, but the price of the stock has gained about 30% over the past few months. Despite the run up, positions remain well suited for risk-averse investors with a long-time horizon. Total return potential out to the 2022-2024 stretch appears to be above average thanks in part to the company’s generous dividend yielding 3.4%.

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