From the Nov. 1, 2017 closing low at $5.07 to the March 26 closing high at $12.95, shares of Massach...
Sonoco Products: Paper Profits
08/28/2013 8:00 am EST
Our latest featured stock for dividend reinvestment plans is a company that was founded in 1899, reports DRIP specialist David Fish in Direct Investing.
Once known as the Southern Novelty Company, Sonoco Products (SON) is a leading producer of paper-based tubes and cores, flexible packaging, rigid plastic containers, cylinder paperboard, wire and cable reels, and point-of-purchase displays.
It serves the food, appliance, furniture, automotive, hotel, health-care, restaurant, electronics, office supply, personal care, and textile industries, among others.
With over 300 operations in 35 countries, it derives more than one-third of its revenues from customers in 85 countries.
Sales are expected to approach $4.9 billion this year, and consensus estimates called for Sonoco to earn about $2.30 per share in 2013 and to net about $2.52 in 2014, compared with $2.21 in 2012.
The dividend, which provides a 3.3% yield, has been increased for 31 consecutive years.
The recent pullback in stock prices offers us an opportunity to buy shares a bit more cheaply, but many investors are reluctant to do so.
The reason is simple: Having seen stock prices double since the Great Recession, many have the impression that stocks are expensive, simply because they now trade near all-time highs.
But some perspective is in order. Our minds are making a comparison to a period when companies were quite undervalued and fear was rampant. The economy was suffering from a financial crisis that caught many off-guard.
Now we are in the midst of a slow but steady recovery, and inflation remains low. Companies are earning more, but their stocks carry only modestly higher price/earnings ratios.
The recent market highs only represent a return to the 2007 levels, not the historical growth that might have taken the Dow to 16,000 and beyond. That future is what investing today is meant to address.
More from MoneyShow.com:
Related Articles on STOCKS
Big changes are coming this fall for investors and traders. The S&P 500 telecommunications servi...
Flo, the perky spokeswoman for Progressive (PGR) likes to tell potential customers that Progressive ...
Business development companies (BDCs) operate under special legal and tax rules that make them pass-...