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Confectionery Giant With Nearly 10 Years of Dividend Growth Solidifies Position on Best Dividend Stocks List

Aaron Levitt Jul 01, 2020

Unless you’ve been ignoring the market over the last few months, you would realize that volatility has continued to rage. Traders are still processing the coronavirus-induced pandemic and its impact on the economy and it doesn’t look like we are in the clear just yet. For investors, these are certainly trying times, which require a special kind of stock to navigate. Luckily, our pick in the consumer discretionary space is such a stock.
Our pick is one of the largest confectioners on the planet. This diverse portfolio of snacks, chocolates, candies, and gum has allowed it to navigate the pandemic with relative ease. While there have been a few dips in its sales on one side, its various portfolio of candy has been able to keep it afloat just fine. Moreover, benefiting from lower commodity costs and relatively higher margins than traditional staples, its operating niche has been able to keep profit growth going during these trying times.
All in all, it’s been a sweet recipe for shareholders, providing capital gains and a rich dividend during the pandemic.
And more could be in store. Investors continue to be drawn to its low cost ‘luxuries’ that blur the line between discretionary and consumer staples. Demand remains steady. With the drumbeat of recession growing, these low-cost luxuries could be the best way to navigate the future as well.
In the end, our pick is doing everything right during these difficult times.
To summarize, here are five reasons why you should own this stock:
1. It is one of the largest manufacturers of chocolate, candy, and other treats with several leading brands under its umbrella.
2. It has a huge moat and recession-resistant nature along with a high-margined consumer niche.
3. It has made more than $250 million in profits during the first quarter of 2020, an increase of 11%!
4. Acquisitions and tangential products under top brands have continued to power its earnings over the years.
5. It has a healthy payout ratio of 57% and growing yield of 2.32%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.

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