There’s nothing more boring than paper & packaging. And that’s just the industry CCL Industries (TSX:CCL.B) happens to be a key player in.
However, CCL is a stock that’s been on my watch list for some time. Here’s why this is an intriguing pick for long-term investors today.
Strong management team bullish for investors
This global specialty packaging company continues to shine among its peers. Indeed, investors have a lot to like about how CCL has weathered some rather difficult times in the paper & packaging industry.
Commodity price inflation, supply chain disruptions and pandemic-induced slowdowns hit this industry hard this past year. However, CCL’s management team has faced these challenges head-on.
The company’s management team has incorporated a number of strategic moves to get ahead of these sector-specific headwinds. Whether it’s through tuck-in acquisitions (or transformative transitions), cost-cutting measures, or efficiency-generating operational improvements, CCL has excelled of late.
Analysts tend to think CCL is likely to be the clear winner in this sector. Why? Well, the company’s shown its ability to insulate its supply chain and provide a growth-oriented business that’s likely to boom due to the robust economic growth expected coming out of this pandemic.
Indeed, CCL’s acquisitive nature is one that’s always struck me. The company’s known for carrying out a range of tuck-in and transformative acquisitions. Accordingly, I think CCL is likely to continue to carry out this strategy over the long-term. Shareholders stand to benefit if CCL can continue to grow as successfully as it has. And I think that’s likely.
A strong growth history backed by strong fundamentals
Surprisingly, CCL is a Dividend Aristocrat with a record of nearly two decades of dividend increases under its belt. However, its current dividend of 1.2% is far from alluring.
That said, investors in CCL have continued to see solid capital appreciation over the years, which has diminished this yield. Any company with the long-term stock chart of CCL is worth a second look. And this company has done a fantastic job in this regard.
CCL’s currently a business with operations in more than 42 countries, generating billions of dollars a year in revenue. This is not small company, with a market cap of more than $10 billion at the time of writing.
For those seeking a safe-haven growth stock right now, CCL is an intriguing choice. This stock has shown relative stability among other sectors, and has continued its upward trajectory recently as the economic outlook has improved.
For long-term investors, CCL looks to be a solid pick. It’s not a stock I’d buy for its dividend, but investors really get that yield for free.
Rather, this is a long-term growth play driven by an excellent management team and a model that works. Enough said.
Like this boring pick, but looking for more excitement in your portfolio? Check out these stocks!
Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends CCL INDUSTRIES INC., CL. B, NV.