The right management team can make all the world of difference for some stocks. A fresh way of looking at things or shifts in a business model can take a long-standing, outdated company and help it to reinvent itself for a new age. And that’s just the case for our Best Dividend Stocks List pick in the office supply sector.
Our pick has smartly pivoted away from items such as envelopes and labels, and has successfully moved into some of the hottest niche markets of the future, including e-commerce and healthcare. Thanks to its expertise in adhesives, our pick is now a leading supplier in the world of omnichannel retailing. From high-tech RFID tags and logistics labeling to innovative packaging and printer solutions, our pick’s products have quickly become a must-have for retailers these days, which has helped to boost its bottom line and improve its cash flows.
At the same time, our pick has expanded into the world of healthcare. Advanced wound dressing and closures, interactive drug labeling products for correct dosing and other high-margin products continue to provide a welcome boost to its bottomline. Sales of these products remain a swiftly growing field.
The best, and most ironic, part is that our pick has only benefited from the coronavirus pandemic. Both the need for more healthcare solutions and work-from-home mandates have strengthened its two fastest-growing divisions by leaps and bounds. And with the pandemic not subsiding anytime soon, and a possible second wave knocking on our doorstep, our pick should be able to keep the growth going.
It’s no wonder why our pick was able to increase its dividend by nearly 7% when other firms are struggling under the weight of the pandemic.
To summarize, here are five reasons why you should own this stock:
1. Operations in more than 50 countries, with more than $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. Managed to see rising earnings last quarter despite COVID-19 headwinds, and was able to upsize its guidance for both profits and cash flows for all of 2020.
4. Increased its dividend by over 200% since 2010, with a nearly 7% boost this quarter!
5. Healthy payout ratio of 36% and yield of 1.66%.
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.
