Food, beverages, healthcare, household items, and personal care products – each one of these categories has something in common, and that’s ‘plastic packaging.’ And the latest pick for our Best Material Dividend Stocks List is a dominant player in this space.
Demand for food-grade packaging continues to grow at an incredibly high clip as the world becomes more interconnected. Fresh food from one hemisphere is wanted in another. Processed goods are traveling across multiple continents before reaching their final destinations.
For edible products, end-users want the assurance of quality and safety, whereas food distributors depend on reliable packaging. For non-food consumables, the rise of eCommerce in the personal products industry means more of everything being shipped all over the world.
Everybody needs affordable, attractive and durable packaging, which translates into a premium for the most reliable packaging companies that produce both lightweight and cost-effective products. This brings us to our latest pick, which has placed itself in prime position as one of the largest publicly-listed packaging companies in the world.
Its well-diversified base of global customers ensures that its revenue is stable, reliable and predictable. It also happens to be a member of the esteemed S&P 500 Dividend Aristocrats.
Income investors needn’t stress about the quality of its dividend – there’s more than enough earnings and free cash flow to go around. Watch the stock when it goes ex-dividend on Wednesday, June 1 (estimated date).
You can check out the Best Material Dividend Stocks List to explore all the stocks.
