Most market experts will recommend against market timing as it is difficult to accomplish. But the reality is, some stocks do better during certain parts of the year or business cycles.
And that’s the case for our Best Dividend Stocks List’s logistics pick. The firm is a master of home delivery and shipping for all matters of retail business. And with the holiday season quickly approaching, our chosen company should get a real shot in the arm when it comes to profits.
Even more so with the rise of e-commerce and online shopping.
Using previous holiday seasons as an opportunity to study shopping patterns, the firm has changed the way it prices lumpy online ordering and improved its process for handling packages. With online sales quickly growing and more Americans shopping via their phones and other devices, our shipping leader is poised to capture more of the online pie as well as make more money from it.
With the firm already a dividend grower for the last seven years, the extra profits, cash flows and gains from this rising online shipping will directly benefit investors through dividend increases and increased share buybacks.
In the end, the next few months will be very good to our logistics play indeed.
See our original article on our pick here.
To summarize, here are five reasons why you should own this stock:
- Stable dividend for almost 50 years and 10% average annual dividend increase since IPO.
- Positioned to be the dominant e-commerce logistics firm that provides a way to play rising online sales.
- Highest operating margins at 14.1% in its industry.
- Operations in more than 220 countries.
- Healthy payout ratio of 55% and high yield of 2.94%.