Ennis
If you’re interested in the industrial sector then we can’t recommend Ennis highly enough. It’s a wonderfully boring stock but that’s the thing, stocks are supposed to be boring. excitement = fluctuations. Fluctuations = potential loss. You want boring in your life, especially when it comes to stocks.
The company is valued at $451.3 million. The dividend yield? 5.2%! They sell business products and forms such as labels, envelopes, tags, and presentation folders. Now take a minute to think about how many such items you see or use every single day… now times that by the millions and you’ll get a better idea of their business model.
Ennis was founded in 1909. Today they serve more than 40,000 distributors!
The company’s payout has remained unchanged for years at a time but they have paid uninterrupted dividends for more than two decades. They’ve even started to return capital more aggressively. In 2017 and 2018, for example, they included double-digit dividend raises.
Worried about the fact that the world is becoming more and more digitized by the second? Thanks to Ennis’ niche, we know they won’t go out of business anytime soon. They offer highly personalized products, making sure that they stand out even in a market that might seem under fire. Plus, none of their customers represent more than 5% of their sales, so they definitely know how to diversify and protect themselves from major losses.
Back in 2018 they announced a 12.5%dividend increase. Furthermore, the company’s payout ratio of 71%- elevated, sure, but it still leaves enough room for modest dividend raises going forward. The best news of all, though? Ennis holds more cash than debt
You might think that this sector of the market is quite scary and that’s understandable, but all one had to do is look at the numbers for the truth! It’s all about facts, not emotions, in the stock market.
