We came across a bullish thesis on Sonoco Products Company on Compounding Quality’s Substack. In this article, we will summarize the bulls’ thesis on SON. Sonoco Products Company’s share was trading at $51.67 as of February 13th. SON’s trailing and forward P/E were 27.93 and 8.61 respectively according to Yahoo Finance.
Sonoco Products Company (SON) is a leading global provider of consumer, industrial, and healthcare packaging, with a recent strategic pivot toward metal packaging through the acquisitions of Ball Metalpack and Eviosys. This move has positioned Sonoco as a global leader in metal food cans, an industry characterized by stability and strong competitive advantages. The company’s business model benefits from long-term contracts with built-in price escalators, allowing it to effectively pass rising raw material costs onto customers, which provides strong inflation protection and revenue visibility.
Sonoco’s commitment to returning capital to shareholders is exemplified by nearly 100 years of uninterrupted dividend payments, including 40 consecutive years of annual dividend increases, demonstrating disciplined capital allocation and a shareholder-first approach. Its current dividend yield of 4.9% offers investors a compelling income stream, underpinned by resilient cash flows from its diversified packaging operations. The company’s consistent financial discipline, coupled with its strategic acquisitions in metal packaging, creates a strong moat and positions it to capitalize on growing demand for sustainable and high-quality packaging solutions globally.
For long-term investors, Sonoco represents a combination of income reliability, inflation protection, and strategic growth in a stable yet evolving industry, making it a notable opportunity for those seeking both capital preservation and steady returns. Overall, the company’s proven track record of shareholder value creation, robust market position, and strategic focus on high-margin metal packaging provide a strong foundation for continued performance and potential upside for equity holders.
Previously, we covered a bullish thesis on Avery Dennison Corporation (AVY) by Serhio MaxDividends in May 2025, which highlighted the company’s strong operational efficiency, growth across high-value product categories, and reliable dividend income. AVY’s stock price has appreciated by approximately 6.43% since our coverage. Compounding Quality shares a similar perspective but emphasizes Sonoco’s strategic metal packaging acquisitions, long-term contracts, and higher dividend yield.
