Pricing power. No where is that more important than in the packaged food segment. Consumers are fickle, and with many foods/goods being interchangeable, slight changes in prices can wreck a firm’s revenue picture. But that’s not so for our latest Best Consumer Staples Stocks Dividend List pick, which has used pricing power to grow its dividend for the last 10+ years straight and provides a decent 1.6% yield.
The key to this pricing power continues to be our pick’s operating niche of sweets and snack foods. Thanks to the product segment’s “little luxuries” connotation, our pick can charge a bit more for its products. But at the same time, snacking and candy isn’t necessarily a discretionary item for most Americans these days – leading to stable demand.
The boost has come from food service segments, M&A into organic/natural items as well as the continued trend in at-home baking/cooking.
All of this has continued to support the stock in the post-COVID world and has allowed it to navigate the high inflationary environment with relative ease. With that, our pick remains a great choice for investors looking to cash in on the consumer economy with a dose of safety.
In order to make room for our new snack food pick, we’ve been forced to remove a baker from the list.
You can check out the Best Consumer Staples Dividend Stocks List to explore all the stocks.
