Bemis Company (BMS) Dividend Stock Analysis

Bemis Company, Inc. (BMS) manufactures and sells flexible packaging products and pressure sensitive materials in the United States, Canada, Mexico, South America, Europe, and Asia. The company operates in two segments, Flexible Packaging and Pressure Sensitive Materials. The company is member of the S&P 500 and the S&P Dividend Aristocrats indexes. Bemis has paid uninterrupted dividends on its common stock since 1922 and increased payments to common shareholders every year for 28 years. The most recent dividend increase was in February, when the Board of Directors approved a 4.40% increase to 24 cents/share. The major competitors of Bemis Company include Sonoco Company (SON), Sealed Air (SEE) and Temple-Inland (TIN). Over the past decade this dividend growth stock has delivered an annualized total return of 10.10% to its loyal shareholders. The company has managed to deliver an increase in EPS of 3.70% per year since 2001. Analysts expect Bemis to earn $2.40 per share in 2011 and $2.68 per share in 2012. This would be a nice increase from the $1.83/share the company earned in 2010. The company's strategy includes acquiring businesses that offer scale, access to new products and markets as well as superb packaging know-how. In 2010 Bemis acquired Alcan Packaging Foods Americas Unit from Rio Tinto (RTP) for $1.20 billion. This deal is expected to be accretive to EPS within 12 months. Bemis is also focusing its efforts on innovation in flexible packaging, in order to solidify its position in the market. Food packaging generates over two-thirds of the companies revenues. The positive fact from this is that since demand for food products is relatively stable, demand for Bemis's packaging should be relatively unaffected by economic weakness, as long as it maintains its market share.12... Read more