Whether it’s a return to more normal conditions or something more transitionary, higher prices are currently pinching consumers. As we’ve returned to work, started to spend again and reignited the economy in the post-pandemic world, inflation has continued to spike. For many consumers, this shock in higher prices has upended budgets with plenty looking for solutions on how to save money.
For our consumer products Best Dividend Stock, the rise in prices is looking like manna from heaven.
Our pick is one of the leading producers of toothpaste, laundry soap and other personal care items. The key is that our pick tends to focus on value categories rather than premium products. Already, our pick has seen sales rise as consumers looked to save money during the pandemic and economic contraction. Now, with prices rising across the board many consumers are staying with our pick’s lower-priced items. Better still is that additional customers have been drawn to our pick’s pricing points in the current inflationary period. This has all translated into additional sales and increased revenues.
But our pick isn’t just about value products. There’s growth potential as well, stemming from its leading brands in the pet care and natural nutrition categories. Animal care continues to see torrid growth as both consumer and industrial clients spend big bucks on their pets/livestock. Meanwhile, our pick has also seen plenty of growth from tangential brand moves into more natural and organic products. Despite our pick’s lower price-point focus, these products do come with higher prices and margins than its regular offerings. As such, it’s managed to boost revenues without trying too hard.
All of this has created a top dividend name that’s winning in the current environment.
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 33% and growing yield of 1.18%.
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