Dividend Stocks to Buy: Tupperware Brands (TUP)
Investing Type: Aggressive (No, really.)
Dividend Yield: 4%
Finally, we come to our third aggressive pick … Tupperware Brands Corporation (NYSE:TUP)?
Just bear with me.
Tupperware has all of the hallmarks of a moderate or even conservative dividend play. TUP shares trade at about 14 times forward earnings estimates and should grow sales a modest 3.1% in 2017 and 3.8% in 2018. Earnings are expected to grow roughly 7% for the next two years, and improve to 12% annually once you look out five years.
Better still, the company raised second-quarter and full-year guidance amid its most recent report.
Plus, Tupperware pays out a nice (but not outlandish) dividend yielding 4%.
The big issue is simply timing — TUP has been on the run, and now that hot performance is catching up to it. Shares are up nearly 30% so far in 2017, but they were doing better until investors started to take some profits off the table. So investors jumping in right now are risking some backpedaling.
A secondary issue is dividend growth. Namely, the quarterly payout has been flat at 68 cents per share since 2014, when the company started to suffer some serious operational issues and the stock hit the skids. A resumption in dividend hikes this year would go a long way to instilling even more confidence in this income play.
But the business is looking up for now, so I would simply wait for shares to back a little further — say, $67-$68 — before jumping in.