Diebold (NYSE:DBD) is all about security, whether it be for businesses protecting account information or governments protecting classified intelligence. This is assuredly a growth industry due to secular trends. As we become increasingly reliant on digital communications, e-commerce and electronics records, the reliance on security services from companies like Diebold will only be greater with each passing year.
No wonder full-year profits for fiscal 2011 will be double 2009 numbers. Despite some hiccups due to cost cutting at governments and businesses during the recession, Diebold has come storming back. Shares are up 24% in the past six months to double the Dow Jones’ returns.
A 3.3% dividend yield is a nice selling point, too, because you will be ensured some income if cost-cutting again puts the squeeze on Diebold contracts or if competitors manage to challenge this industry leader.
Jeff Reeves is the editor of InvestorPlace.com. Write him at editor@investorplace???.com, follow him on Twitter via @JeffReevesIP and become a fan of InvestorPlace on Facebook. As of this writing, he did not own a position in any of the stocks named here.