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Paint and coating manufacturer
Sherwin-Williams(SHW) is in rally mode right now, breaking through the $100 mark in yesterday's session to close just shy of $101. That's not the only way investors are seeing returns from this stock right now -- last week, SHW announced a 6.85% increase to its quarterly dividend. The move puts the firm's total yield at 1.55% right now.
Sherwin-Williams has a unique model for a paint company. Yes, the firm owns an attractive portfolio of brands that range from its namesake label to Dutch Boy, Krylon, and Thompson's Water Seal. But what's really interesting are the nearly 3,400 company-owned paint stores that span North America. Owning stores isn't a cheap proposition, but it does increase customer stickiness, a crucial factor for success in the age of the big-box hardware store.
While the recession (and its impact on construction-centric stocks) did have an outsized impact on Sherwin-Williams, the firm has rebounded hard in recent years, closing 2011 with sales that were well in excess of pre-recession highs. With a rock solid balance sheet and palpable growth right now, this stock paints an attractive picture for investors -- even if it doesn't qualify as a core income holding.
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-- Written by Jonas Elmerraji in Baltimore.