It’s no secret that the traditional manner in which retailers operate will change in the post-pandemic world. Consumers today want omnichannel solutions. They want to buy products online or in-stores, collect the items themselves or have them delivered. And they want it all at the same price and with ease. It takes an awful lot of behind-the-scenes muscle to make this happen. Those firms that provide these sorts of omnichannel solutions are seeing their stars shine as many retailers take the plunge and spend big bucks on satisfying consumers.
Our Best Dividend Stocks List pick in the materials science space is one of those providers.
Already the leading supplier of radio-frequency identification (RFID) labels and products, our pick has continued to expand into omnichannel and logistics solutions for retailers, including cold chain products, inventory tracking items and even products for food delivery/safety. Demand continues to surge as more retailers look for ways to track their goods and get them to consumers in the manner that they want.
And it turns out that also includes shopping at physical stores again. With the pandemic subsiding, consumers are once again returning to stores as well as shopping online. This has prompted its latest buyout of a leading provider of labeling solutions at the so-called shelf-edge. The buyout comes with a hefty dose of digital data solutions. Ultimately, the buyout will make our pick a one-stop shop for retailers looking to build out their entire omnichannel ecosystem.
When you add in the torrid growth from retailing solutions to our pick’s other high-margin businesses, like healthcare, aerospace, energy and even food packaging – you have a recipe for long-term success. And one that continues to provide investors with strong cash flows, dividends and a great total return.
To summarize, here are five reasons why you should own this stock:
1. Winner in the omnichannel war with a wide range of products for retailers and food service firms.
2. Continues to use M&A to its advantage. It’s latest buyout adds in-store and data capacity to its existing product lines.
3. A focus on high-growth sectors allowed its earnings to surge by 130%+ and sales to jump by 35%+ in its latest reported quarter!
4. Strong cash flows helped it to increase its dividend during the pandemic, as well as buy back a hefty amount of stock.
5. Healthy payout ratio of 32% and yield of 1.3%.
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