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03/28/2016 8:00 am EST
Founded in 1877 and based in Delaware, Ohio, our latest new recommendation is a world leader in industrial packaging products and services, explains Mark Skousen, editor of High-Income Alert.
Greif (GEF) produces steel, plastic, fiber and corrugated containers, packaging accessories and containerboard for a wide range of industries.
It also owns and manages several thousand acres of timberland. The company operates out of more than 200 locations in 50-plus countries.
In the commercial world, not much travels from point A to point B without professional packaging. And Greif is growing rapidly, both internally and through acquisitions.
Ten years ago, it made two significant buyouts: Delta Petroleum Company and Blagden Packaging Group’s steel drum manufacturing business.
Six years ago, it acquired the top three producers of flexible intermediate bulk containers. Those acquisitions are still paying dividends, both literally and figuratively.
In the most recent quarter, earnings per share beat consensus estimates. Revenue surpassed $3.6 billion over the last 12 months.
And the stock currently yields an attractive 5.5%. The company has maintained a dividend of 42 cents a quarter every quarter for the past six years. And I see earnings rising from $2.26 a share this year to nearly $2.75 in 2017.
Insiders own 74% of the outstanding shares here. And they have not lost their appetite for the stock. CFO Lawrence Hilsheimer recently purchased 37,000 shares in a $1 million transaction.
Riding his coattails would be a good idea. Pick up Greif at market. And place a protective stop at $25.
By Mark Skousen, Editor of High-Income Alert
Editor’s Note: Mark Skousen will be a featured speaker at the MoneyShow in Las Vegas on May 9th-12, hosting a special panel on the stocks to buy for a new Democratic or Republican administration. Register by clicking here.
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