Lately, markets have been becoming increasingly jittery, and frankly, it’s for good reason. Not only do we find ourselves in what is the ninth year of the current bull market, but now we’re dealing with escalating threats of tough talk, tariffs, and trade wars. While there is no way to truly know in advance how all of this will play out, what we do know is that markets don’t like uncertainty, and it certainly seems as though things are becoming more and more uncertain. With that in mind, now might be a good opportunity to re-evaluate your portfolio and see…
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Lately, markets have been becoming increasingly jittery, and frankly, it’s for good reason.
Not only do we find ourselves in what is the ninth year of the current bull market, but now we’re dealing with escalating threats of tough talk, tariffs, and trade wars.
While there is no way to truly know in advance how all of this will play out, what we do know is that markets don’t like uncertainty, and it certainly seems as though things are becoming more and more uncertain.
With that in mind, now might be a good opportunity to re-evaluate your portfolio and see if there are any holdings that deserve to be sold.
Of course, if you decide to go that route, one angle to take is to hold the proceeds from any sales in your cash account or money market funds and wait patiently for a rainy day when “Mr. Market” becomes decidedly pessimistic about the future.
Another avenue you could take would be to put the proceeds from any sales into safer, more defensive companies — potentially companies that pay dividends.
If you are dependent on income from your investments to fund living expenses, a healthy and growing dividend can be just what the doctor ordered for occasions like these.
With that in mind, Intertape Polymer Group (TSX:ITP) could be just the stock to fit the bill.
Intertape has enjoyed some decent growth in recent years, and there’s plenty to suggest that trend should continue for at least the next couple of years as well.
Intertape has managed to grow its sales by 2.74% per year over the past five years, which, thanks to the advantages of leverage, has translated to an annual average growth rate in operating profits of 6.1% and net profits of 25.8% over the past five years.
The company has been experiencing that growth largely thanks to improved demand for its products; Intertape’s primary business is the manufacture of packing tape.
You can probably imagine that as more commerce has been shifting towards online retailers, like Amazon.com, Inc., eBay Inc., and those using the Shopify Inc. platform, more and more products are being shipped in cardboard boxes, sealed with that all-too familiar packing tape.
That’s helped lead to Intertape’s acquisition of Cantech last year and the development of three new plants: one in North Carolina and two in India.
For now, the company is investing pretty aggressively in additional capacity to meet oncoming demand, and if things pan out the way it hopes they do, it should pave the way for future dividend increases for years to come.
With a dividend yield of 4.03%, and a conservative payout ratio just above 50%, and with the stock just a hair off its 52-week low, now could be the perfect opportunity to snap this one up and, in doing so, add a little extra security to your investment portfolio.
Just one ticking time bomb in your portfolio can set you back months - or years - when it comes to achieving your financial goals. There's almost nothing worse than watching your hard-earned nest egg dwindle!
That's why The Motley Fool Canada's analyst team has put together this FREE investor brief, including the names and tickers of 3 TSX stocks they believe are set to LOSE you money.
Stock #1 is a household name - a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company's prospects will improve (especially after one more government bailout).
Still, our analysts rate this company a firm SELL.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jason Phillips has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Amazon, Shopify, and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.