California, New York, Ohio…the list goes on. These days, the coronavirus is once again ramping up in a big way. And to that end, the number of states and cities starting to impose lockdowns, curfews and travel restrictions is growing. People are once again ordered stay-at-home mandates.
And our Best Dividend Stocks List pick in the consumer sector is prepared to win during the next phase of lockdowns again.
As one of the largest producers of confectionery products, our pick portfolio of goods has been seen as “simple” luxuries. To that end, its cash flows, revenues and profits have been largely recession-resistant throughout its history – but the pandemic has brought forth some unique wins for the company.
With working from—home and new lockdown orders now the norm, our pick has continued to win on the home-cooking front. Sales of raw ingredients, baking products and other needs to make meals/deserts have exploded during the last year. And it’s all due to the pandemic. The firm’s internal data and sales point to this trend is continuing. Meanwhile, the firm’s food service division continues to be robust as restaurants boost their takeout sales.
The end result is a steady-eddy firm that’s seeing a wonderful pandemic jump both its sales and its bottom line.
For investors, this has resulted in some pretty wonderful dividend growth over the year, and also plenty of capital gains.
To summarize, here are five reasons why you should own this stock:
- One of the largest manufacturers of chocolate, candy and other treats, with several leading brands under its umbrella.
- Huge moat and recession-resistant nature with a high-margined operating consumer niche.
- Earnings per share jumped by a whopping 40% year-over-year in the latest reported quarter.
- Continued winner in the stay/work-from-home future, with a large product portfolio for home chefs.
- Healthy payout ratio of 51% and growing yield of 2.17%.
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