Making address labels, envelopes and other office supplies is pretty boring. So boring, in fact, that investors didn’t want any part of it.
But, luckily, for our Best Dividend Stocks List’s pick in office supplies, it has transformed itself in a major way. No longer is our pick “left for dead” by the broader investment community. Our pick has used a ton of innovation, M&A and technology to move away from boring labels and into a variety of specialty films, medical/healthcare products and even solutions for e-commerce.
That’s led to some hefty dividend increases and capital appreciation for investors in our pick over the last year.
But our once-boring office supplier’s best days could still be ahead. Our pick has its hands in a variety of major growth sectors. We’ve already talked about healthcare, but what about smartphones and touch panels? Green building films and adhesives? Near-field communications (NFC) sensors for all matters of logistics? It has them all and is quickly becoming the go-to play for some of the world’s biggest businesses.
In the end, the focus on new and higher-margined business has transformed our pick into a powerhouse. A powerhouse that has seen better earnings and cash flows since its transformation began. The latest of which was its recent double-digit earnings growth.
To summarize, here are five reasons why you should own this stock:
- Saw net revenues increase by 8.7% to $6.61 billion last year.
- Increased its dividend by over 125% since 2010.
- Mega-winner from some of the biggest upcoming trends, such as rising healthcare demand, wearables and online shopping.
- Effectively using M&A to grow its core and higher-margined business segments.
- Low payout ratio of about 37% and growing yield of 1.53%.
See the original article on our pick here.
