I’d buy shares in this FTSE 100 dividend champion right now and hold for 10 years

first_imgI’d buy shares in this FTSE 100 dividend champion right now and hold for 10 years Kevin Godbold | Thursday, 27th February, 2020 | More on: MNDI See all posts by Kevin Godbold There’s a little wobble in the full-year figures from FTSE 100 paper and packaging supplier Mondi (LSE: MNDI) today. In fairness, the share price has been signalling weakness by drifting generally lower since the summer of 2018. Nevertheless, in the report, the directors retain their optimism about the company’s future.Revenue came in 3% down on last year’s figure and underlying earnings per shares dipped by 10%. But the all-important number for cash from operations only ticked down by 1%. And net debt fell by 0.6%. I find the cash performance encouraging, and the directors slapped 9% on the total dividend for the year, which suggests a positive view about the outlook.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A great record on dividendsOne of the things I like most about Mondi is the dividend has risen by just over 100% over five years. That’s a great record of shareholder returns, and it’s been backed up with a strong, steady and generally rising stream of incoming cash flow. Indeed, cash flow has been robust support for earnings over an extended period. I reckon there’s a large defensive element to the company’s business.Chief executive designate Andrew King said in the report he thinks Mondi delivered a robust performance in 2019 “against a backdrop of challenging trading conditions.” And that’s a similar message to the one I reported on earlier today from the company’s smaller peer Macfarlane (which is another stock I’m tempted to buy right now).King reckons Mondi controlled costs well over the year and saw a good contribution from “acquisitions and capital investment projects.”  Luckily, that “partially offset” weakness from the firm’s key pulp and paper grades.And the company is carrying out a capital investment programme designed to deliver growth and increase competitiveness. One example of that is the rebuilding of the Ruzomberok pulp mill in Slovakia, which the firm commissioned during the second half of the year.There’s also an ongoing project to invest in a new 300,000 tonne “kraft top white machine” on the site, along with “major” capital investment projects at the Syktyvkar mill in Russia and the Steti mill in Czech Republic.Well-placed in its marketsThey’re not the only reinvestment projects Mondi is pursuing. And I reckon the way the firm ploughs money back into the business will help keep it well-placed in its markets to drive that ongoing cash flow and power the progressive dividend policy in the years ahead.Looking ahead, King is “confident” about the structural growth drivers in the company’s packaging sectors, although he reckons heightened macro-economic uncertainties will likely continue to affect markets in the short term.The current year, for example, has started off with lower prices across the company’s key paper grades. But King is seeing indicators of “stability” in pricing in “certain segments.”The short-term outlook is a little hazy, but that could be the best time to pick up some of the company’s shares. At the recent price of 1,625p, the stock supports a dividend yield of around 4.3%, which I see as attractive. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Addresslast_img read more