If slow and steady wins the race, thenTupperware (
) is a true winner.
The company's profit has risen at a steady pace for at least
eight years. Even during the worst of the recession, in 2008 and
2009, profit grew 19% and 15%, respectively. That explains the
company's rock-steady three-year Earnings Stability Factor of 2
on a scale of 0 to 99, with 0 being most stable. The five-year
rating is a solid 4.
Investors have rewarded the stock by pushing it up more than
30% this year, easily outperforming the S&P 500. Meanwhile,
Tupperware has more than doubled its dividend since late 2011, to
62 cents a share from 30 cents. The current annualized yield is
2.9% vs. 2.4% for the S&P 500.
IBD calculates a three-to-five-year dividend growth rate
of 18% for Tupperware.
Tupperware has expanded beyond its iconic plastic food
containers, and now sells kitchenware and beauty and personal
The Orlando, Fla.-based company has also ventured into
fast-growing emerging markets, which now account for the bulk of
But while overseas expansion has helped shield Tupperware from
slower growth in the developed world, it exposes the company to
currency risk. In July, the company downgraded its full-year
earnings outlook, in part due to currency fluctuations, as the
dollar strengthened against currencies in major markets such as
India and Indonesia.
Analysts expect Tupperware's profit to rise 11% this year to
$5.53 a share, followed by a 13% gain in 2014.
Tupperware's return on equity was a robust 57.4% in 2012, the
highest in years and a sign the company is managing its finances
well. The debt-to-equity ratio is 86%.
Meanwhile, annual pretax margin was 14.2% last year,
accelerating for the sixth year in a row.
The stock has pulled back and found support at its 10-week
line after clearing an 85.32 cup-without-handle base Aug. 1.