5 Strong Stocks to Buy for an American Infrastructure Boom

If the federal government can pass something as rancorous and partisan as the Republicans’ tax law, then a bill that can garner bipartisan support and is (almost) equally beneficial for every American citizen should be easy.

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If the federal government can pass something as rancorous and partisan as the Republicans’ tax law, then a bill that can garner bipartisan support and is (almost) equally beneficial for every American citizen should be easy. That “something” is infrastructure, and the Trump administration has signaled an ambitious plan to rebuild America’s aging bridges, roads and other parts of our decrepit infrastructure.

The thinking here follows the advice given by Deep Throat to Washington Post reporters Bob Woodward and Carl Bernstein: Follow the money. At present, expectations are the administration will try to pass a deal that includes $200 billion in new spending, as well as various incentives that could push total spending to about $1 trillion over the next 10 years.

Companies that benefit from infrastructure spending have had slim pickings over the past decade. For most of the past 10 years, Congress has spent only what was necessary, with states sometimes having to pitch in and raise gas taxes.

However, these five companies should look like attractive stocks to buy if the sluices open for infrastructure spending in 2018 – a likely outcome.

Data is as of Jan. 17, 2017. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Companies are listed alphabetically. Click on ticker-symbol links in each slide for current share prices and more.

Ken Berman
Contributing Writer, Kiplinger.com
Email: ken.berman@gorillatrades.com
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Ken Berman has been buying and selling stocks since he was a teenager and met with early success trading then-fledgling biotech stocks like Amgen, Biogen and Immunex. He later became a broker and worked for two wire houses, where he developed a proprietary system for buying and selling equities. In 1999, Mr. Berman formalized his method under the Gorilla Trades name and now has subscribers in the U.S. and 55 other countries around the world.