Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
If you’re like me, you’re buying more products online these days, or at least ordering via an app and picking it up curbside. Already growing, omnichannel retailing has exploded during the pandemic as the preferred way consumers, and now businesses, order goods. In order to make omnichannel work effectively, it takes plenty of logistical infrastructure and software to keep track of these goods to ensure they get to the right place. And luckily for our Best Dividend Stocks List pick In the materials sector, it just so happens to be a major winner from the shift to ecommerce and omnichannel sales.
Our pick is the leading supplier of radio-frequency identification (RFID) labels and products. RFID labels are needed to track goods and packages during shipping. Usage and demand for these products have exploded in recent years, and our pick now controls 50% of the industry demand for these products. This has helped it to drive impressive revenue gains over the years and throughout the pandemic.
But our pick is not just a one-trick pony.
Our selection continues to move into other pressure-sensitive materials. This has included a wide variety of healthcare/medical products, food packaging and even products for the aerospace/defense industry. These high-margin sectors have only strengthened our pick’s growth position and made it a successful dividend stock.
Meanwhile, management has been smart with M&A and buyouts. Our pick continues to purchase smaller firms to boost products and sales in its main growth areas. So far, these purchases have been wonderful for its bottom line. With more M&A on the way, our pick should be able to keep the growth going far into the future.
In the end, our pick remains a top way to get growth and steady income from one stock.
To summarize, here are five reasons why you should own this stock:
1. Operates in more than 50 countries, with nearly $7 billion in sales just last year.
2. Smartly used M&A and R&D to pivot into many fast-moving and high-tech sectors, such as logistics and healthcare.
3. Despite COVID-19 headwinds, earnings surged by 8% for 2020 as higher-margined products led the way.
4. Strong cash flows helped it to increase its dividend during the pandemic, as well as buy back a hefty amount of stock.
5. Healthy payout ratio of 37% and yield of 1.31%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividenc.com Rating system. Go Premium to find out the entire list.