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protective packaging

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Packaging Company with 35+ Years of Dividend Increases Makes It onto Best Dividend Stocks List

Alejandro Barreto Nov 14, 2018


Dividend.com has added a consumer products firm to the Best Dividend Stocks List and removed a community bank from the list.

We all know that retail is a bloodbath. Online and e-commerce have changed the game and many traditional retailers are playing catch-up. Margins are thinning and consumers have flocked to omnichannel means of distribution. “Bricks and clicks” is now the norm. The problem is, trying to pick clear-cut winners in this new environment is hard. One second, a firm seems like it’s getting it, only to have the rug pulled out from under it.

But for our new consumer products Best Dividend Stocks List Pick, it doesn’t matter who wins out – online, in-store or omnichannel. That’s because our pick makes products that are required by retailers in all means – that would mean packaging.

Protective packaging for shipping to stores and homes may not seem like a booming business, but thanks to the recent surge in the online and omnichannel shopping, our new pick has become a rising star. Sales continue to hit records and profits have jumped at our new pick. Online shopping has given new life to more than 120-year-old company.

It’s also given new life to the firm’s dividend growth. Already our pick has paid a steadily increasing dividend for the last 35+ years. But lately, its dividend has taken on a life of its own – with the last increase being over 5%. With continued sales growth and more of its income coming from online/omnichannel customers, future increases are assured.

For investors, our new pick provides a nice backdoor play on rising e-commerce growth.

To summarize, here are five reasons why you should own this stock:

  1. Protective products like boxes and internal packaging components accounted for more than half of the company’s sales in 2017, making it a prime play on online shopping growth.
  2. Tight supplies of these goods have allowed the company to raise prices between 6 and 10% for the new year.
  3. Improved focus on moving into higher-margined areas such as sterile and additional protective packaging solutions for retail and healthcare markets.
  4. Has paid a dividend for nearly 375 consecutive quarters and has increased its payout consistently over the last 35+ years.
  5. Healthy payout ratio of 49% and growing yield of 2.92%.

Check out our previous pick here.

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