There’s no doubt that the COVID-19 pandemic has uprooted and changed much about society. From the way we work and play, the pandemic has had some long-lasting effects. But one area that hasn’t changed is many of our normal day-to-day functions of life. We still need to brush our teeth, wash our clothes and feed our pets. For companies operating in the consumer staples sector of the market, the pandemic has been nothing but a real “blip” on their earnings.
And that includes our Best Dividend Stocks List pick in the sector.
Thanks to our pick’s wide moat within the consumer product segment, it’s been able to move through the pandemic with ease. In fact, sales jumped by more than 10% throughout the year as more consumers have flocked to its value-oriented brands. The increased cash flow and profits generated by these sales have allowed our pick to continue its pace of dividend growth. Our pick recently upped its dividend by more than 5%, marking its 25th year of consecutive dividend hikes.
But our pick has plenty of room for growth.
Thanks to its moves into the lucrative pet-care sector, organic/natural offerings, vitamins/supplements and cross-product development of its leading brands, our pick has long avenues for growth. Even more so when you consider that many consumers have historically stuck with its products after switching to competitors during periods of economic strife. The reality is that our pick has the potential to keep its dividend growing over the long haul.
To summarize, here are five reasons why you should own this stock:
- Leading consumer products company specializing in “value brands.” Very recession & pandemic resilient.
- Pulled in nearly $5 billion in sales last year – a year-over-year increase of over 10%.
- Paid dividends for 120 years with its latest payout rising by more than 5%!
- Moved into the faster-growing pet-care & men’s grooming categories with great success.
- Healthy payout ratio of 40% and growing yield of 1.2%.
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.
