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AmerisourceBergen: Growth, Value, And Dividends As Easy As 'ABC'

Published Mon, 11 Feb 2019 06:43:26 -0500 on Seeking Alpha

The best dividend growth stocks to buy and hold for the long term have a few key characteristics in common. They have leadership positions in their industry, durable competitive advantages, and the ability to grow revenue and earnings over long periods of time.
AmerisourceBergen (ABC) has all of these qualities. It is currently ranked #12 on the Fortune 500, with more than $160 billion in annual revenue. This is a highly profitable business, and has displayed a remarkable ability to continue growing revenue and EPS even in a challenging environment for pharmaceutical distributors.
ABC stock is attractively valued, with a low P/E in comparison to the company’s strong future growth potential. In addition, the stock offers a nearly 2% dividend yield and the prospect of annual dividend increases. ABC is a Dividend Achiever with over 10 consecutive years of dividend increases. This makes the stock a buy for long-term value and dividend growth investors.
Business Overview And Recent Results
AmerisourceBergen (in its current form) was created in 2001 by the merger of AmeriSource and Bergen Brunswig. Today, it is one of the largest healthcare distributors in the United States. ABC provides pharmaceutical products and business solutions to a variety of customers, which include healthcare providers, veterinary practices, and livestock producers. The company also services global manufacturers to improve supply chain efficiency. ABC generates annual revenue of $167 billion, with... Read more