If you had to guess what one of the best-performing stocks of all time would be, the odds are you’d mention some sort of tech or high-growth firm. But you’d be wrong. The reality is, it’s actually a humble purveyor of peanut butter, bacon and salsa. And our Best Dividend Stocks List pick in the consumer staples sector continues to rack up wins for its investors. That’s because our pick is dominating several trends.
For starters, the coronavirus pandemic has continued to keep consumers inside their homes, resulting in the rise of home cooking and snacking. As a leading producer of protein, meat and snack foods, our pick’s options continue to get the nod from consumers. Better still, there has been shifts toward healthier protein and snack products. With new organic and natural brands under its wing, our pick is gaining valuable additional market share and sales from health-conscious consumers. No wonder sales hit another record during the last quarter.
But our pick isn’t done yet.
Our selection continues to use smart M&A to build out its core brands. This includes buying top-name franchises from struggling rival food companies. A prime example was its recent billion dollar buyout of a top nut brand from a rival. These sorts of moves have worked well in the past, and management has demonstrated its ability to find great opportunities.
Add in its continued expansion into food service and restaurant-focused products – which have seen some snapback now that the virus is abating – means that the gains and dividends will be here for the long haul. All in all, our pick proves that boring can also provide plenty of growth.
To summarize, here are five reasons why you should own this stock:
- Continued its pace of record sales growth last quarter, with revenues jumping by more than 2.5%.
- One of the first movers into new natural, organic and plant-based protein sources, providing it with a long runway for future growth.
- M&A specialist with its latest move predicted to add $1 billion in net sales per year.
- Dividend Aristocrat with 50+ years of dividend increases, with the latest increase being more than 5%.
- Healthy payout ratio of 55% and increasing yield of 2.03%.
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.
