Watching paint dry is as exciting as, well, watching paint dry. But as a portfolio play, the paint and specialty coatings market can be very exciting indeed. Just ask our latest Best Dividend Protection Stocks Model Portfolio pick! Our selection has used its stature in the industry to reward investors with over five decades of dividend growth. Its dividend has grown by over 7% annually in the last ten years alone!
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The secret to our pick’s success is its focus on specialty coatings and sealants – yes, our pick mostly makes paint for your house, but this division produces plenty of strong cash flow. However, the real money for our pick remains in its specialty products. A variety of industrial, energy, infrastructure and technology firms turn to our pick for their coating needs. These products come with high margins and have continued to bolster our pick’s cash flow and profits.
Better still, our pick has been smart with its innovation and M&A. The firm has been a major consolidating force in the sector, buying out smaller rivals for various specialty products to boost its own portfolio.
In the near term, our pick has continued to profit from the spread of relatively low input costs and higher prices for its products. The end result is a dividend stock with plenty of cash flow generation, which is perfect for conservative portfolios.
With a stable 1.76% yield, long history of dividend increases and a top-notch balance sheet, our pick is an ideal portfolio choice.
In order to make room for our paint pick, we are removing a midstream firm. We are also increasing our holdings in snack food and beverage specialist to rebalance the portfolio.
