Greif, Inc. (NYSE:GEF)
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Provides industrial packaging and services, including steel, fiber, corrugated and multiwall containers and protective packaging for various industries. The Company also produces containerboard and manages timber properties in North America.
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This stock qualifies for my high stable dividends screen, which typically outperforms the S&P 500 by more than 10% per year. The idea of the screen is to look for stocks that meet the following criteria: (1) dividend yields above 2% (2) stock seems undervalued and (3) dividend appears to be sustainable or growing. I think that Mr. Market will reward this type of stock in the near future as investors flee bonds in search of higher yields. Stable stocks should look appealing given the uncertain economic future for developed economies. The current dividend yield of Grief, Inc. is about 2.8%. Current ROE is 23% and the stock is trading for just 14 times expected earnings. The current payout ratio is 0.4 and the five year average payout ratio is 0.3