The pandemic has continued to put pressure on a variety of sectors. But with the first and second quarter in the books, we are beginning to see who the real winners are shaping out to be. This includes our Best Dividend Stocks List pick in the consumer products sector.
Consumer products, such as shampoo, toothpaste and laundry soap, are often seen as ports in a storm. Sales continue to be steady as no matter the economic environment, people still need to brush their teeth and clean their homes. Our pick’s latest results are a perfect example of this. Despite the pandemic, our pick managed to see a massive 35% jump to its quarterly earnings. Better still, sales at the firm rose by more than 10%. This sort of power demonstrates just how the consumer products sector can be wonderful during economic uncertainty.
Even better is that our pick could continue to thrive if the economy keeps getting worse.
Our pick tends to focus on value consumer brands, offering lower price points than its rivals’ products. This fact has continued to make it a top choice for cash-strapped consumers during recessions and downturns. Better still is that consumers will often stick with our pick’s products once the economic strife subsides. Add in recent moves to offer higher-margined pet care, wellness and vitamin products, and you have a recipe for long-term success.
All of this has created a cash flow and earnings machine that continues to pay big dividends for its investors. And its latest quarter is a perfect example of its successes.
To summarize, here are five reasons why you should own this stock:
- Leading consumer products company specializing in recession-resilient, value brands.
- Pulled in nearly $2 billion in sales last quarter – a year-over-year increase of more than 10%.
- Increased its dividend for nearly 15 years straight, including a more than 5% increase at the start of the year.
- Moved into the faster-growing pet care segment via tangential brand growth and M&A.
- Healthy payout ratio of 36% and growing yield of 1.06%.
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.
