Looking at various pieces of economic data, the recession is just around the corner or at bare minimum global growth is slowing. A variety of metrics have started to deteriorate and show some bearish signs. Investors have a right to be a bit nervous. And in that, safety with a side growth is on the menu.
Or we should say cookies, candy and crackers are on the menu.
Our Best Dividend Stocks List’s pick in the food and beverage sector has seen its star shine over the last few months since our initial pick back in the fall. Discretionary snacks and candy provide the perfect mix of steady cash flows and growth potential. Investors of all stripes have rushed into the safety of our pick, providing a good return for shareholders in just a few months.
And our selection isn’t done growing just yet.
Thanks to its premium and top-brand positioning, our pick has been able to raise prices and pass on higher costs to consumers with ease. At the same time, a smart international acquisition and expansion strategy is beginning to pay serious benefits. Our pick has been able to build scale in key emerging markets and raise prices here as well. Finally, our pick has moved heavily into more natural, organic and clean snack choices to go with consumer preferences. These sorts of foods come packed with higher margins. All in all, the continued growth has allowed our pick to become a cash flow machine.
With strong revenue growth and dividend growth, our pick has the right product mix to get investors through the rocky market.
Check out our original pick here.
To summarize, here are five reasons why you should own this stock:
- Global reach with operations across both developed and emerging markets. Sales are roughly split 60/40% and clocked in at $25 billion in 2018.
- Generated free cash flows of nearly $3 billion and saw double-digit earnings growth for full-year 2018.
- Thanks to higher prices and more natural food products, margins have expanded by more than 15%.
- Since its spin-off, our pick has managed to steadily increase its dividend – with its last increase being more than 18%!
- Healthy payout ratio of 42% and growing yield of 2.19%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary rating system. Go Premium to find out the entire list.