A common pitfall for many income investors is to focus on
yield without paying any attention to price performance.
For dividend investors,Tupperware Brands (
) offers the best of both worlds. Not only has it been a strong
price performer in the market, but it also pays a nice
The company makes food preparation, storage and serving
solutions for the kitchen and home. It also offers a line of
beauty and personal care products. Tupperware sells its products
directly to distributors. Its current sales force stands at 2.8
million with an active sales force of 800,000.
After its IPO in 1996, Tupperware paid a consistent quarterly
dividend of 22 cents a share. In October 2009, it raised its
dividend by 14% to 25 cents a share. Two additional 20% hikes
declared in November 2010 and January 2012 left the dividend at
36 cents a share.
When the company reported fourth-quarter results in late
January, shares gapped up nearly 5%. The midcap company reported
quarterly profit of $1.71 a share, up 14% from a year ago. Sales
rose 5% to $711 million.
The big news, though, was that it raised its quarterly
dividend to 62 cents a share, up 72% from 36 cents. It also
increased its share repurchase program from $1.2 billion to $2
billion and extended it two years to Feb. 1, 2017.
Since a breakout from a cup-with-handle base in January,
Tupperware has rallied about 20%. Its annual dividend yield is
3%, slightly above the S&P 500's current yield of 2.5%. Its
dividend growth rate is a respectable 13%.
Tupperware reports earnings Wednesday before the open,
expected to rise 10% to $1.13 a share with sales up 4% to $662.9