When it comes to dividend safety and strength, boring is beautiful. Buying stocks with strong businesses in must-have niches produce the best results. This is evident by our latest Best Dividend Protection Stocks Model Portfolio pick’s nearly 40 years’ worth of dividend increases, including its latest 2.1% jump!
The secret to that streak of dividend payouts continues to be our pick’s niche of producing packaging solutions. All in all, our pick is one of the largest producers of packaging for food, medicines, personal care and other products – a market that helps it generate more than $15 billion in revenue per year.
That steadfastness has helped drive cash flow and its dividend strength.
But our pick has grown as well. Omnichannel, rising fuel costs and supply chain woes have continued to drive more durable, lightweight packaging solutions. At the same time, forays into medical device and healthcare packaging have boosted margins given the strict regulatory requirements for such items. In the end, the combination of stability as well as new avenues for growth has lit a fire under our stock’s cash flow.
Given the stability of the business and the potential to grow cash flow, our pick makes an ideal selection for conservative investors.
You can check out the Best Dividend Protection Stocks Model Portfolio to explore all the stocks.
