Sonoco’s stock returns 30% year to date
Sonoco Products has posted a 30% return year to date, beating the Nasdaq’s 10.3% and the S&P 500’s 8.5%. The company’s dividend yield is 3.78%, above the S&P 500 average.
Sonoco’s sales dropped 2% in the latest quarter, but earnings rose 26% year over year to $0.68 per share. This is largely due to an expense-reduction plan that led to a 4% drop in selling, general, and administrative expenses.
The company’s Profitability Performance Plan targets $32 million in savings this year and $150 million to $200 million over the next three years. Sonoco is also streamlining operations by reducing costs and increasing efficiency.
The company has boosted its dividend annually for the past 43 consecutive years, and if it continues to do so for seven more years, it will be a Dividend King.