It turns out, you can teach an old dog new tricks. Once considered a “left for dead” value stock, our Best Dividend Stocks List’s pick in office supplies has continued to reinvent itself.
Since making our initial selection back in April 2017, the firm has undergone several transformative M&A deals to bring its product mix into the 21st century. This has included a hefty dose of medical/healthcare products, as well as a variety of specialty industrial films and tapes. Investors in our pick have already benefited from high capital appreciation and dividend growth.
See the original article on our pick here.
But our once-boring office supplier’s best days could still be ahead. That’s because, in addition to its focus on specialty products and healthcare, our pick stands to gain tremendously from the rise of e-commerce. As one of the largest providers of RFID products, our pick has already inked plenty of partnerships for package tracking with several omnichannel retailers. The continued growth in online sales will only push more profit its way.
In the end, the focus on new and higher-margined business has transformed our pick into a powerhouse. A powerhouse that has seen better earnings and cash flows since its transformation began.
To summarize, here are five reasons why you should own this stock:
- Increased its dividend by over 125% since 2009.
- Operations in more than 50 countries with more than $6.1 billion in sales last year.
- Mega-winner from some of the biggest upcoming trends, such as the rising healthcare demand, wearables and online shopping.
- Effectively using M&A to grow its core and higher-margined business segments.
- Low payout ratio of 37% and growing yield of 1.82%.