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10 Year-Increasing Snack Food Producer Reaffirmed in Best Dividend Growth Stocks Model Portfolio

The mantra these days is “pricing power.” Those firms that have been able to pass on price increases to customers have thrived during this era of high inflation. Our latest Best Dividend Growth Stocks Model pick is a prime example of that. Thanks to its niche, our pick has been able to raise prices, thereby, boosting its profitability and dividends. Investors can catch our pick’s 2.5% yield before Thursday, September 29, when the stock goes ex-dividend with a 10% jump in its regular payout to $0.385 per share!

The secret to that pricing power continues to be its niche. Our pick is a packaged food producer operating in the snack food sector. Cookies, candy and crackers are technically not necessities; however, these days they pretty much are. As a result, demand remains steady but consumers are willing to take price increases in stride.

The end result is plenty of pricing power for our pick. Even better has been continued growth in tangential branding and new moves into organic, natural and diet-specific snacks, in which margins are relatively higher.

In the end, our pick makes for an ideal dividend stock that features plenty of payout growth.

You can check out the Best Dividend Growth Stocks Model Portfolio to explore all the stocks.

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