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Experienced Investor

Stock of the week: Bunzl

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
20/06/2016

Graham Spooner, investment research analyst at The Share Centre, picks food and packaging supplier Bunzl as stock of the week for longer term investors. 

Bunzl provides distribution and outsourcing services across the world and the company is best known for being a supplier of food packaging, hygienic clothing as well as paper and plastic disposables. Investors should appreciate that the group has a strong market position within the support services sector and it continues to make steady progress despite difficult market conditions, suggesting management have a good business model.

The company’s approach of making acquisitions to boost revenue and profit continues to work well. This has led to improving dividends and strong share price performance. Furthermore, interested investors should note that the company has a solid global presence, which has protected it from regions that have suffered more, such as Europe.

This is a well-managed business with strong defensive qualities and improving dividends. As a result, we recommend Bunzl as a ‘buy’ for longer term investors with a balanced portfolio. Ahead of the Brexit vote, investors are advised to drip feed over a period of time.