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Shares in companies that can increase their dividends over time can be great sources of passive income. Especially when they trade at unusually cheap prices.
That’s the case with Associated British Foods (LSE:ABF) – the stock’s at a 52-week low, the dividend yield’s at a 10-year high, and the growth’s been impressively consistent. So should investors consider it?
The business(es)
Depending on how you look at it, Associated British Foods is either an impressively diversified firm – or a mix of businesses that don’t really make much sense together. It might be a bit of both.
The company has five divisions. These include sugar, agricultural feeds, and branded groceries, but the largest of these by some margin is Retail – which is value fashion and lifestyle group Primark.
From an investment perspective, I’m much more positive about Primark than I am…
