Sonoco Products Company (NYSE:SON)
The company projects EPS growth of between 2.3% and 5.0% this fiscal year. Moreover, the company’s long-term targets are $5.5 billion to $6 billion (up from approximately $4.8 billion in 2012) for sales and 10% annually for base EPS. Growth will be driven by organic sales, new products, and acquisitions. Its longer-term strategy also includes shifting sales mix toward less cyclical consumer-related markets. The company’s exposure to volatility in raw material prices and its relatively sizable exposure to Europe remain its weak points. Sonoco Products Company (NYSE:SON) is trading at 15x forward earnings, on par with its industry’s forward multiple.
Bemis Company, Inc. (NYSE:BMS)
In the first quarter, Bemis Company, Inc. (NYSE:BMS) hit a record adjusted EPS. For the year as a whole, its adjusted EPS will grow by between approximately 7% and 14%. In the long run, analysts forecast Bemis Company, Inc. (NYSE:BMS)’s EPS CAGR of 7.8%. The company expects that its growth will be driven by emerging markets’ food safety regulations, an increased consumer focus on convenience features, and a greater need for shelf stable foods. Bemis Company, Inc. (NYSE:BMS) is trading at 16.7x forward earnings, above the packaging industry’s average forward multiple of 15.1x.
E I Du Pont De Nemours And Co (NYSE:DD)
Hence, for 2013 as a whole, DuPont projects a 2%-to-7% growth in its adjusted operating EPS. Still, for the reference, its long-term sales CAGR target is 7% and its adjusted operating EPS CAGR target is 12%. E I Du Pont De Nemours And Co (NYSE:DD)’s growth drivers are its product innovation, which annually accounts for about 30% of sales, and emerging market growth, which has averaged a 22% CAGR since 2008. E I Du Pont De Nemours And Co (NYSE:DD)’s latest licensing agreements with Syngenta AG (ADR) (NYSE:SYT) and Monsanto Company (NYSE:MON) will also contribute; read more about it here and here. DuPont is trading at 13.5x forward earnings, below the commodity chemicals industry’s multiple of 14.6x.
Final thoughts
Like most dividend-paying stocks, the five companies mentioned on Value Line’s list aren’t the sexiest. From Bemis Company, Inc. (NYSE:BMS) to E I Du Pont De Nemours And Co (NYSE:DD), from Sonoco Products Company (NYSE:SON) to Air Products & Chemicals, Inc. (NYSE:APD) to Praxair, each of the aforementioned equities offer solid safety moving forward, and should be relatively insulated from any economic shocks that could occur in the near- to intermediate-term.
Disclosure: none
