If there has been one dominating headline over the last few quarters, it has to be the U.S./China trade war. The saber-rattling and resulting tariffs, taxes and fees have driven the market’s gains and continue to be a thorn in the side of many top stocks. It’s a huge problem that has had – and could continue to have – serious results for the global economy. However, for our Best Dividend Stocks List pick in the consumer staples sector, the trade war has provided the impetus to look elsewhere for growth. And on that front, it’s winning.
Our pick continues to shift into natural and organic foods as well as experiment with plant-based protein sources. Plant-based foods have the potential to be a multibillion market opportunity in a few years and have been growing at a nearly 15% annual rate. Given our pick’s size and scope in the protein sector, it has the goods to win with these natural and plant-based foods.
Read about our original pick here.
And let’s not forget about the recent positive news on the trade front.
With President Trump and Chinese President Xi Jinping resuming talks and putting aside new tariffs, analysts are increasingly positive that a trade deal could be coming sooner than later. This is wonderful news for our pick. WIth the end of the tariffs and our pick’s new growth initiatives, this will only super-charge its earnings growth, keep the cash flows coming and build upon its long history of dividend increases.
In the end, our pick has navigated the current tariff market and is getting a major boost as it changes for the better.
To summarize, here are five reasons why you should own this stock:
- Continued record sales growth of nearly 15% annually for the last decade.
- One of the first movers into new natural, organic and plant-based protein sources, providing it a long runway for future growth.
- Big play on the Chinese and emerging market consumer demand, which will benefit the stock with the end of the trade war.
- Dividend Aristocrat with 50+ years of dividend increases, with the latest increase being well over 10%.
- Healthy payout ratio of 48% and increasing yield of 2.05%.
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