Not every business is equipped to make the most out of a slowing economy. It takes a special kind of group to be able to generate high cash flows, revenues and profits when the world is going to heck. Even better if demand for its products grow during these tumultuous times. Well, luckily for our Best Dividend Stocks List pick in the services sector, it’s managing to do just that.
As one of the largest consultants in the world, our pick has been able to prosper during the pandemic. It’s a tough time for businesses out there. Finding ways to save money, grow and navigate an eventual new post-pandemic environment takes a lot of effort and expertise. With firms lacking this sort of knowledge internally, they’ve turned to our pick in spades. Revenues have continued to surge during the pandemic as companies look to stay afloat and maneuver through.
The best part is our pick’s massive margins – its only costs are brain power and technology – have provided plenty of high profits and cash flow over the last year.
And growth is continuing as well.
Continuing with its data services and tech implementation for clients, our pick has continued to see its revenues and margins expand further. Earnings per share managed to jump by more than 10%, and management was able to increase its guidance for the year based on the surge in new bookings and sales.
All in all, our services pick continues to be a top-notch play for investors seeking high growth and a side of income.
To summarize, here are five reasons why you should own this stock:
- One of the largest consultants pulling in more than $40 billion in sales just last year.
- Benefits from a recession-proof business model based on providing consulting service during both good and bad economic environments.
- Increased its dividend for 10 years straight and returned more than $5 billion in cash back to investors via dividends & buybacks last fiscal year.
- Moves into cloud computing have continued to boost margins even further.
- Healthy payout ratio of 47% and growing yield of 1.3%.
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.
