We recently published a list of the 10 overlooked dividend shares to buy now. In this article we will see where Silgan Holdings Inc. (NYSE: SLGN) stands against others overlooked dividend shares.
In recent times, dividend investment – also known as share income – has been out of favor. As soon as a wide and reliable strategy followed, it is gradually overshadowed. The strong capital profits supplied by growth stocks seem to have removed the attention of investors from the more stable and consistent returns associated with dividend -paying shares.
However, the recent decline of the market, in combination with the economic impact of Trump’s trade policy, has brought renewed attention and appeals to these types of shares. The S&P dividend Aristocrats Index, which follows the performance of companies with at least 25 consecutive years of dividend growth, has fallen by slightly more than 2% since the beginning of 2025, compared to a decrease of 6% in the wider market.
Dividend shares have seen mixed results about different economic cycles – perform well in some decline and in others left behind. In general, the broader market during the recessions from July 1981, March 2001 and December 2007, however, their performance was lagging behind during the shorter recessions in 1980 and 2020. This was mainly due to dividend reductions from large companies, along with limited exposure to fast -growing names of technology. For context, the steepest fall in dividends during the financial crisis of 2008-2009, when S&P dividend spending fell by 24%, declined, although investors still received 76% of their income.
That said, although the possibility of dividend reductions is a valid care and a potential disadvantage of this strategy, it should not be a reason to completely overlook dividend shares. When they are carefully admitted, they can still play a valuable role in a well -completed investment portfolio.
M&G Investments noted that dividends serve more than just income – they also point to the financial health and confidence of a company. Although short -term returns are often dependent on share valuations, dividends play a much more substantial role in stimulating returns over longer periods, such as 10 or 20 years. The report also stated, with reference to Bloomberg’s data, that dividends play a crucial role in the long -term return. In the past 25 years, almost half of the total profit of US shares comes from reinvested dividends and the power of compiling. During this period, the wider market yielded an average annual return of 7.4%, at 55% attributed to rising stock prices and the remaining 45% from re -invested dividend income.
The fact that dividends are not guaranteed emphasizes a deeper financial story behind company decisions. Companies must carefully consider the return of profit to shareholders and keep sufficient income at hand to support future expansion. Doing this balance is a strategic task.
A particularly high dividend payment ratio – usually above 75%, although this varies per sector – can increase red flags on sustainability. When too much profit is paid, there is little room left to increase dividends along the line. This could ultimately cause a company to scale back or even stop its dividend payments, which can stop both business growth and the long -term profit in stock value. Given this we will look at a few overlooked shares that pay for dividends.
Silgan Holdings Inc. (SLGN): Under the dividend shares overlooked to buy now
An industrial robot arm that automates the production of metal containers.
For this list we have thoroughly assessed renowned sources such as Forbes, Morningstar, Barron and Business Insider and searched for shares that remain under the radar but have strong balance and sound finances. Moreover, these less well-known dividend companies also have dividend growth track records, making them a reliable option for income investors. After compiling our data, we chose 10 companies with the highest number of investors in hedge funds, such as according to the Q4 2024 database of Insider Monkey.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Number of holders of hedge funds: 21
Silgan Holdings Inc. (NYSE: SLGN) is an American production company, with head office in Connecticut. The company specializes in packaging for consumer goods. It has been expanded over the years to become a prominent global supplier of sustainable rigid packaging solutions for consumer goods, with activities of 107 production locations on four continents. In the past 12 months, the share has risen by almost 10%.
Silgan Holdings Inc. (NYSE: SLGN) reported strong income in the fourth quarter of 2024. The company achieved $ 1.4 billion turnover, which showed a growth of 5.3% from the same period last year. The income also beat the estimates of analysts with $ 12.4 million. During the quarter, the company completed the takeover of the Weener’s packaging. It also reported a record adjusted EBIT for the segment of the depicting and specialty closures and marked three straight neighborhoods with double digits volume growth in its release product line.
The cash position of Silgan Holdings Inc. (NYSE: SLGN) also remained stable in 2024. During the year, the company generated an operational cash flow of $ 721.9 million, and the free cash flow came in $ 391.3 million, both tones growth of $ 482.6 million and $ 356.7 million, in 2023. The company is also pays the company. In February it declared an increase of 5% in its quarterly dividend to $ 0.20 per share. This meant the 21st consecutive year of dividend growth of the company. With a dividend revenue of 1.56%, SLGN is one of the best overlooked shares on 25 April.
Generally SLGN is in 10th place On our list of De Best, dividend shares to invest in. Although we recognize the potential of SLGN as an investment, our conviction lies in the belief that some deeply undervalued dividend shares have a greater promise for supplying a higher efficiency within a shorter time. If you are looking for a deeply undervalued dividend share that is more promising than SLGN, but that is traded with 10 times its income and his income increases at double digits per year, view our report on the dirt cheap dividend stock.
Read next: 20 best AI shares to buy now And 30 best shares to buy now according to billionaires.
Publication: none. This article was originally published on Insider Monkey.
