I’d buy this FTSE 250 dividend growth stock in a Stocks and Shares ISA

first_img Enter Your Email Address 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. “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. I’d buy this FTSE 250 dividend growth stock in a Stocks and Shares ISA 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. Image source: Getty Images. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Avon Rubber. 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.center_img Our 6 ‘Best Buys Now’ Shares It’s impossible to speculate with any degree of certainty when the share market rout will end. That doesn’t suggest a lack of tantalising buying opportunities out there, though.Accurately predicting the bottom of any market collapse is tricky in times of any social, economic, or political catastrophe. It’s particularly difficult now as the world battles the biggest public health crisis in exactly a century.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…Still, trying to time trades to the very best moment isn’t a problem that long-term investors should be tackling. The key to successful stock investing is by buying shares with a view to holding them for anything from 10 years to a few decades. Over that timescale, buying a share at its very-lowest price is unlikely to make a big dent in overall returns.More contract newsThe most important point is that you just need to get the ball in play. And ongoing risk aversion on equity markets has bolstered the appeal of some truly-brilliant share market heroes.Take Avon Rubber as an example. I recently explained why this is a top stock for even the most nervous investors, and recent newsflow from the business illustrates why.Defence spending is one of the most stable segments in terms of government spending, irrespective of macroeconomic trouble. In fact, Avon, which predominately makes safety masks for armies, police forces, and security services, announced news of $20m order with the US this week.The order, shipments under which will begin in early 2021, came as part of the Enhanced Small Arms Protective Inserts body armour contract with the US Defense Logistics Agency. Said contract was built with a maximum value of $333m over a possible three-and-a-half years.Reassuringly expensiveSuch is the dependable nature of arms demand, City analysts still expect Avon to keep growing the bottom line through to the end of the next fiscal year at least (to September 2021). This means that it still trades on an elevated forward price-to-earnings (P/E) ratio, of 24.1 times.But forget about this hefty paper multiple, I say. A firm with such delicious defensive capabilities warrants a rating higher than that of the broader market, I say. It’s a lifeboat in what promises to be a tough year or two for the global economy.I’d also buy the business on account of its market-leading protective products, demand for which is soaring with customers all over the globe. Annual revenues rose by more than 8% in financial 2019 as a result.Dividend starI also consider Avon to be a particularly attractive pick for income chasers.Ignore its low yields of 1.1% and 1.4% for this financial year and next respectively. This is a company whose bright earnings outlook and strong cash flows are leading brokers to predict more weighty dividend growth, too.Keeping its long record of big yearly bumps going, Avon increased the payout 30% last time, out to 20.83p per share. And City forecasters expect rewards to rise to 27.1p this year and again to 34.6p in fiscal 2021. This is a brilliant long-term buy for Stocks and Shares ISA investors, and particularly those seeking increasingly chunky dividends. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Royston Wild 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. Royston Wild | Saturday, 28th March, 2020 | More on: AVON last_img

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