Why I’d buy this FTSE 100 stock as it continues its 27-year record of dividend growth

Tag: 上海品茶网ALZ

first_img Kevin Godbold has no position in any share mentioned. The Motley Fool UK owns shares of and has recommended Britvic and GlaxoSmithKline. The Motley Fool UK owns shares of PZ Cussons. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Why I’d buy this FTSE 100 stock as it continues its 27-year record of dividend growth Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” See all posts by Kevin Godbold Image source: Getty Images. Kevin Godbold | Monday, 24th February, 2020 | More on: BNZL center_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. The share price of international distribution and services company Bunzl (LSE: BNZL) is bucking the prevailing trend today and creeping up!According to the share-focused website ADVFN, around 8% of all shares on the London stock exchange are rising today but a whopping 61% are declining. The remaining 31% are unchanged.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…As I write, the market is weak with the FTSE 100 index down more than 3% since its opening level on Friday last week. Indeed, every share in my own portfolio shows red today.The market likes the full-year figuresSo, with the share price up around 3%, it appears that the market likes Bunzl’s full-year results report released this morning. And I find the figures to be reassuring. At constant currency exchange rates, revenue increased by 1% compared to the prior year and adjusted earnings per share rose 1% too.But digging a little deeper reveals more good news. The operating margin ticked up from 6.7% to 6.8% and free cash flow grew by 10%. The company reckons cash conversion came in at 101%, which demonstrates profits are backed with powerful cash flow.The directors continued the firm’s remarkable 27-year record of annually raising the total dividend by pushing it up by almost 2.2%. The thing I like most about Bunzl is its long record of rising cash flow and dividends. I keep a watch list of shares labelled ‘defensives’ such as Bunzl, along with the likes of GlaxoSmithKline, SSE, Britvic, PZ Cussons and many others.Generally, I’m always looking to buy the shares of these companies when opportune moments arise, and Bunzl’s share price has drifted around 23% lower over the past year or so. I reckon the stock is worthy of my research time right now.Consistent trading suggests a strong nicheWith such consistent financial and trading figures, it’s no surprise that Bunzl has carved a niche for itself in a steady market. The firm supplies non-food and generally not-for-resale products to businesses, organisations, and sectors. We are talking about stuff that customer-organisations use themselves in the day-to-day running of their operations, such as chemicals, safety consumables, bandages, gloves, labels, films, grocery, packaging, and products for cleaning and hygiene.The business operates internationally, with around 51% of adjusted operating profit coming from North America, 27% from continental Europe, 13% from the UK & Ireland, and 9% from the rest of the world. So, if you buy some of the company’s shares, you’re making a big bet on the health of the US economy.And the forward-looking dividend yield of just over 2.6% for 2020 won’t be the biggest you’ve ever seen, but I like the way the dividend keeps on growing. Looking ahead, chief executive Frank van Zanten said in the report he expects ongoing challenging trading conditions ahead, but he believes Bunzl will continue to grow earnings because of its vibrant acquisition programme – the firm sees itself as a consolidator operating in fragmented markets.I like Bunzl and would be more confident holding the shares into a general economic downturn than I would be holding out-and-out cyclical shares such as banks, oil companies and retailers. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img read more