2024-07-07 06:06:22 ET
Summary
- The market is focusing solely on the potential negatives of the Eviosys acquisition while ignoring the accretive earnings forecast.
- Sonoco's investments in automation and operational efficiency underpin the plan for increasing EBITDA margins.
- Institutional buyers have stepped in over the last two weeks, possibly helping to put a floor in the share price.
- Sonoco's global customer base is geared towards consumer staples end-markets and should be insulated from any broad-based economic downturn.
- The shares trade at a discount to peers and offer an attractive dividend yield backed by a long track record of paying and growing the dividend.
With markets currently sitting at all-time highs, it may be prudent to increase allocations to defensive sectors like consumer staples, health care and utilities. One of the challenges with the consumer staples segment is picking the right brand or product category. Sonoco Products Company ( SON ) is a packaging supplier to many of the leader consumer products companies around the globe. Why not get broad exposure to consumer staples without the risk of choosing a single brand or category while collecting a growing dividend and 4.2% yield?...
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Sonoco Products: Selloff Is Overdone, Buy To Lock In 4.2% Yield