You are here: Home - Investing - Experienced Investor - News -

Stock of the week: DS Smith

0
Written by: YourMoney.com
15/05/2017
Ian Forrest, investment research analyst at The Share Centre, picks corrugated and plastic packaging group DS Smith as stock of the week.

Founded in 1940 in the East End of London, DS Smith is now a leading provider of corrugated and plastic packaging in 25 countries. As well as this, the company operates a recycling business that collects used paper and corrugated cardboard from which it makes the recycled paper used in corrugated packaging.

The group has experienced excellent sales and earnings growth in recent years, especially due to the strong trend towards online retailing where cardboard packaging is widely used to transport products. Interested investors will therefore want to note that it recently confirmed trading has remained in line with expectations with good volume growth. Indeed, DS Smith’s strategy of adapting to provide customers with a growing range of services has helped drive growth and retain customers.

The latest update also pointed to the fact that the recently acquired businesses have made solid progress and the group therefore expects to deliver on all five of its medium term financial targets. Investors should acknowledge that DS Smith has a good track record of boosting growth with well-judged acquisitions.

Strong earnings are now feeding through into dividend payments, which have increased substantially in recent years, and the prospective yield now stands at 3.6%. Combine this with good sales growth, a solid record with acquisitions and a cost-cutting plan, we continue to recommend DS Smith as a ‘buy’. The shares are suitable for investors seeking a mixture of income and growth but also willing to accept a higher level of risk.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
pension retirement
The pension oversight that could cost you £1,000s

It’s important to check the target retirement age you selected when you started your pension. If it’s too early, you...

Close