For income investors one important factor for the decision
of which stock to buy is dividend safety.
During economic upturns most companies benefit from rising
profits, but during economic downturns some companies are hit harder than
others. Recession resilience therefore is an important data point long-term
focused investors should look at.
Stocks from the consumer staples industry are among the most
resilient companies when it comes to dealing with the impact of recessions,
which is not surprising, as their products are bought by customers whether the
economy is doing well or not.
One sub-category of the consumer staples industry is the
packaged food industry, which we will look at more closely in this article.
Packaged food stocks usually are not high-growth stocks, as
demand for their products is not growing at an extraordinarily high pace.
Through a combination of relatively high and secure dividends, some growth
(through rising prices, international expansion or margin growth) and, in many
cases, inexpensive valuations, they nevertheless have the potential to deliver
attractive total returns.
In this article we will take a look at the 8 dividend stocks
from the packaged food sector in our Sure Analysis Research Database that offer
the highest expected returns over the coming five years.
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