Veolia Environ (EPA: VIE)

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Veolia Environ (EPA: VIE) is a French multinational corporation that operates in the field of environmental services, with specific focus in waste management, water management, and energy. It was founded way back in 1853 in Paris, France, as a water supply company before ultimately changing its name to Veolia in 2003. The stock trades on the EuroNext stock exchange which is currently the largest European stock exchange by market cap, and is valued in euros. Its current price level of 22 Euros, is the equivalent of approximately $ 26 USD per share
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The COVID-19 pandemic hit France hard over several waves, but Veolia remained more or less steady with a 52-week price range of 15.68 Euros to 23.94 Euros. As can be expected by a long-established utilities firm, Veolia performs in vital sectors that are hardly ever disrupted, especially if it holds government contracts. Here are a few things to note if considering Veolia as an addition to your portfolio!

The Bullish Case: Veolia is at the center of environmental sustainability in France, and is leading the charge to fight climate change and help find ways of eliminating plastic waste. Veolia operates on four pillars of sustainability: protecting biodiversity, finding solutions to plastic pollution, recovering wastewater, and innovating for resilience. The company has its hands in multiple different industries, including paper production, water production, oil and gas, mining, pharmaceuticals, and electric vehicles, just to name a few. 

Veolia has a long list of international projects currently in progress including building microgrid energy sources for JFK Airport in New York, and utilizing lithium ion batteries to power Ellesmere Port incineration plant in the U.K., as well as working throughout the COVID-19 pandemic to bring clean water to communities around the world when supply chains were hindered. One of Bolivia’s main goals is to provide access to clean water to the estimated 2.2 billion people around the world who do not have it.
The Bearish Case: It’s hard to really find a bearish case for such an established utilities conglomerate, aside from the fact that investors who are chasing massive growth potential may not find it with Veolia. While there have certainly been peaks and valleys in between, Veolia’s stock traded at 20.18 Euros on May 1, 2016, and is trading for 22.33 Euros as of April 6th, 2021. Not exactly a dynamic stock to own. But with a generous 3.13% annual dividend yield, shareholders would have compounded their initial investment several times by now. Financials fell during 2020 as with many companies around the world, with a decline in EBITDA, free cash flow, and year over year revenues. Despite this, the stock remained little changed following the fourth quarter and full-year reports issued at the end of December 2020.

Final Verdict on Veolia: Another rock solid company to add to your portfolio, especially if you are interested in a stock that will steadily compound over time as the healthy dividend continues to get reinvested into new shares. The world will always need water and power, and is constantly looking for new ways and technologies to reduce pollution, and create a healthier global environment for decades to come.

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