Unless you’ve been living under a rock, you know that the e-commerce revolution is underway.
Online shopping is completely reinventing consumerism across the world. And much of that growth isn’t just coming via the means of online. Omnichannel or “bricks & clicks” is redefining how people shop for all manner of goods. To play that surge, most investors have turned to retailers navigating the online/store waters successfully. But there is another way to take advantage of the surge in online/omnichannel growth.
And that’s with our industrial Best Dividend Stocks List pick.
Despite its small-cap size, our pick is a powerhouse in online shopping. The reason? It produces a wide variety of equipment that other firms use for inventory tracking, safety, and product identification. That includes everything from barcode scanners and label makers to lock-out tags and even inventory software. If you want to build-out a warehouse to send your goods all across the world, you need to call our pick for its products.
This small niche is paying some serious benefits for investors. The growth in warehousing has only increased our pick’s cash flows exponentially and has helped drive dividend growth over the last few years. In fact, the growth allowed our pick to recently increase its payout for the 33rd consecutive annual time.
But our pick isn’t done. With still not enough warehouses currently available for retailers to offer two-day or same-day shipping, there’s a long runway for our pick’s revenues to grow further. Meanwhile, a move into service and software-generated revenues is increasing margins at our pick even further.
All in all, our small-cap pick is the backbone of the modern omnichannel retailing environment.
To summarize, here are five reasons why you should own this stock:
- Fifth consecutive quarter of organic revenue growth, which led to a a big 20% jump to year-over-year profits.
- The firm’s products are tied to some of the biggest future trends: including e-commerce, food safety and healthcare
- Great balance sheet with a strong positive net cash position. Cash on hand is more than triple its debt.
- This year represents the 33rd consecutive year of dividend increases.
- Healthy payout ratio of 38% and healthy yield of 1.98%.
Check out our original pick here.