We came across a bullish thesis on Sonoco Products Company on Compounding Quality’s Substack. In this article, we will summarize the bulls’ thesis on SON. Sonoco Products Company’s share was trading at $51.67 as of February 13th. SON’s trailing and forward P/E were 27.93 and 8.61 respectively according to Yahoo Finance.
Sonoco’s commitment to returning capital to shareholders is exemplified by nearly 100 years of uninterrupted dividend payments, including 40 consecutive years of annual dividend increases, demonstrating disciplined capital allocation and a shareholder-first approach. Its current dividend yield of 4.9% offers investors a compelling income stream, underpinned by resilient cash flows from its diversified packaging operations. The company’s consistent financial discipline, coupled with its strategic acquisitions in metal packaging, creates a strong moat and positions it to capitalize on growing demand for sustainable and high-quality packaging solutions globally.
For long-term investors, Sonoco represents a combination of income reliability, inflation protection, and strategic growth in a stable yet evolving industry, making it a notable opportunity for those seeking both capital preservation and steady returns. Overall, the company’s proven track record of shareholder value creation, robust market position, and strategic focus on high-margin metal packaging provide a strong foundation for continued performance and potential upside for equity holders.
Previously, we covered a bullish thesis on Avery Dennison Corporation (AVY) by Serhio MaxDividends in May 2025, which highlighted the company’s strong operational efficiency, growth across high-value product categories, and reliable dividend income. AVY’s stock price has appreciated by approximately 6.43% since our coverage. Compounding Quality shares a similar perspective but emphasizes Sonoco’s strategic metal packaging acquisitions, long-term contracts, and higher dividend yield.
Sonoco Products Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held SON at the end of the third quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of SON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SON and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
