Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
A rocky economic environment requires steadfast stocks, and investors can’t find a better port in the storm than the consumer staples sector. After all, we still need to wash our clothes and brush our teeth no matter what the economic environment is doing. These daily needs have powered our latest Best Dividend Protection Stocks Model Portfolio pick for hundreds of years, rewarding shareholders with more than 50 years of dividend increases!
In the search for the Best Dividend Protection Stocks, 16 factors are scored across +1,500 dividend stocks and only the best combination of dividend safety and low returns risk receive a Buy rating. Our process is systematic, goal focused and designed for lower risk investors seeking steady income in retirement.
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Our pick is one of the largest consumer products firms on the planet, covering more than 200 different nations with its products. This global reach along with its top portfolio of brands have helped the firm deliver stability amid many fluctuating economic conditions. A mid-tier price point for many of its items has continued to buoy it during the current high inflationary environment. Additionally, sales growth in Latin America helped the firm overcome cost pressures for ingredients. Meanwhile, a focus on tangential branding and differentiated points along the product value chain in the U.S. helped boost revenues as well
And that’s not all. Our pick has found ways to grow in the normally sleepy staples sector. Recent moves into the fast-moving and lucrative pet-care segment along with natural and targeted demographic products have helped deliver revenue boost and margin expansions. Meanwhile, our pick’s ability to leverage its brands for launching new products has helped keep more consumers within its system.
As such, this well-covered large-cap Cons. Prods stock is yielding a modest 2.52% with a $1.880/shr forward dividend that is paid quarterly. Their $60.8B market cap ranks 11th out of 67 dividend stocks in the Cons. Prods industry, the largest being Procter & Gamble (PG) at $323.5B, and they have $9.3B in debt and $950.0M in cash.
The stock has support from both the sell-side and buy-side. Analysts are Overweight-rated on average with expectations for eps to grow a healthy 9% next year. Relative to the 52-week highs, the stock is inline with the S&P 500 at -11% vs -12% and is an average performing Cons. Prods dividend stocks, which are -11% as a group.
Year-to-date, the stock has returned -5% vs 7% for the S&P 500 and -1% for the Cons. Prods industry.