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Industrial Stock With Strong Margins Maintains Position on Best Dividend Stocks List

Aaron Levitt Feb 27, 2019


$517 billion. That’s a lot of coin. And it also happens to be the amount of money consumers spent online in 2018. That was nearly a 15% jump over 2017’s numbers for online sales. This growth – as well as the increase in omnichannel retailing – underscores the revolution that is going on in the retail sector. More and more consumers are choosing mobile and e-commerce for their shopping needs. The problem is, this shift to “bricks & clicks” is making the retail sector a cutthroat bloodbath. Picking winners is becoming increasingly difficult.

But this is where our Best Dividend Stocks List pick in the industrials sector comes in.

Truth be told, our pick isn’t a retailer, but it has much to gain from the shift in e-commerce and omnichannel retailing. That’s because our pick produces a wide variety of equipment that other firms use for inventory tracking, safety and product identification, which 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.

It’s a good niche to be in. In order to make the new e-commerce revolution a reality, it takes a ton of fulfillment centers and warehouses. Outfitting them has allowed our pick to report some stellar earnings over the past few years. In fact, the growth has allowed our pick to grow pre-tax earnings for 14 consecutive quarters.

All of this has made our pick a dividend and cash flow champion. And with the growth in online/omnichannel retailing just getting started, the runway for our pick to keep the good times going is long. In the end, our pick is the smart way to play the cutthroat retail sector.

Check out our original pick here.

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

  1. Revenues for fiscal 2018 clocked in over $1 billion.
  2. The firm’s products are tied to some of the biggest future trends – including e-commerce, food safety and healthcare.
  3. Its margins have improved to 50% as it moved into software and automated labeling/warehouse offerings.
  4. This year represents the 33rd consecutive year of dividend increases.
  5. Healthy payout ratio of 38% and yield of 1.76%.

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.

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