Consumer products stocks are often a calm port in a storm. Thanks to their “always needed” nature, sales tend to be stable in times of duress. And given the COVID-19 pandemic, geopolitical uncertainty and other issues plaguing the world, you can make the argument that we are currently living in a time of duress. Which is why our Best Dividend Stocks List pick in the consumers staples has been a top performer during the pandemic.
But the real win for our pick isn’t just that it sells laundry soap and toothpaste; it’s also about the type of products it sells.
Our pick’s brands are the leaders in the so-called value category. Thanks to their lower price points, consumers tend to flock to these products during economic constrained conditions. Just like we are seeing now. The best part is that most consumers tend to stay with our pick’s products once conditions return to normal. This creates plenty of revenue boosts. Organic sales at our pick jumped by nearly 10% last quarter as consumers made the switch to its value offerings.
But our pick still has plenty of avenues for growth left.
New moves into pet care and men’s grooming sectors are providing a huge boost to its bottom line. Again, the value proposition of its products is driving the show. In the end, our pick has just the right combination of stability and growth that investors should be looking for in this environment.
To summarize, here are five reasons why you should own this stock:
- Leading consumer products company specializing in “value brands.” Very recession resilient.
- Pulled in more than $1 billion in sales last quarter – a year-over-year increase of nearly 14%.
- Paid dividends for nearly 480 consecutive quarters and raised its payout every year for the last 15 years.
- Moved into the faster-growing pet care & men’s grooming categories with great success.
- Healthy payout ratio of 34% and growing yield of 1.07%.
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