ACCO Stock: Overlooked $3.72 Stock Pays Great Income
April 16, 2025
ACCO Brands Stock May Be Down, But It’s Not Out
When the economy starts to slow, demand for non-essential goods drops. Households cut back; corporations tighten their budgets. Sadly, we are currently seeing the odds of a recession in the U.S. increase, and the global economy is expected to go through a rough patch.
All of this is because President Donald Trump has decided to slap tariffs on countries across the board. This is expected to increase prices in the U.S., causing all sorts of issues in global trade. It’s making investors, businesses, and consumers nervous.
With all this in mind, take a look at ACCO Brands Corp (NYSE:ACCO). If history has taught us anything, it’s that times of economic slowdowns or when investors are panicking are usually the best opportunities to look at companies that have been unfairly beaten down.
ACCO stock isn’t doing too well these days, but it’s definitely worth a look. It has dropped close to 28% since the beginning of 2025.
ACCO stock isn’t glamorous. It’s not a technology play. However, there’s a real business here, with revenue, cash flows, a decent dividend, and a management team that’s hard at work.
What Does ACCO Brands Do?
ACCO Brands is one of the world’s largest suppliers of select categories of branded academic, consumer, and business products. Its product portfolio includes everything from notebooks and planners to whiteboards, shredders, and computer and gaming accessories.
The company markets products in over 100 countries through its own sales force and distribution networks, operating through two business segments: ACCO Brands Americas and ACCO Brands International.
The company sells its product under industry-leading brands such as “Artline,” “AT-A-GLANCE,” “Barrilito,” “Five Star,” “Foroni,” “GBC,” “Hilroy,” “Kensington,” “Leitz,” “Mead,” “Quartet,” “Rapid,” “Rexel,” “Swingline,” “Tilibra,” and “Wilson Jones.” (Source: “Overview,” ACCO Brands Corp, last accessed April 15, 2025.)
ACCO Earnings: 2 Big Things to Watch Here
Let’s not sugarcoat it—recessions and economic slowdowns are bad news for consumer-facing businesses.
However, when ACCO Brands recently reported its fourth-quarter and full-year 2024 results, they showed that the company is weathering the storm and making some smart moves to which long-term investors should pay attention.
Its net sales were $1.67 billion, down 9.1% from $1.83 billion in 2023. ACCO Brands’ net loss for the year was $101.6 million, or $1.06 per share. In 2023, the company reported a net loss of $21.8 million, or $0.23 per share.
On the surface, a decline in sales and profits doesn’t look good. But ACCO Brands has been taking steps to become more efficient and financially strong.
There are two things to watch here.
- Debt reduction: ACCO Brands reduced its net debt by $94.0 million in 2024, with a consolidated leverage ratio of 3.4x at the year-end. Plus, management has said that it’s working to reduce debt further in 2025. This is a big step in the right direction.
- Cost savings: The company has implemented a multi-year cost savings plan. In 2024, it saved $25.0 million…and the savings are expected to continue in 2025. This is not pocket change. These savings should help improve profit margins.
A Solid Dividend History: 29 Consecutive Quarterly Payouts
Looking at its dividends, you’ll see that ACCO stock pays a healthy amount.
ACCO Brands currently pays a quarterly dividend of $0.075 per share, which translates to $0.30 per share on an annual basis and dividend yield of over eight percent. This is well above the S&P 500’s average and what you would get holding a 10-year U.S. bond.
It’s also worth noting that ACCO Brands has a history of paying dividends. It launched its dividends in 2018, recently declaring its 29th consecutive quarterly dividend.
More importantly, Tom Tedford, ACCO Brands’ president and chief executive officer, had this to say regarding the recent dividend: “This is the Company’s 29th quarterly cash dividend since it began paying dividends in 2018. The Company’s dividend has become an important part of our capital allocation strategy, and we remain committed to supporting our quarterly dividend with our robust free cash flow. At the current stock price, on an annualized basis, our shareholders are receiving an approximate 6% yield on their investment.” (Source: “ACCO Brands Corporation Declares Quarterly Dividend,” ACCO Brands Corp, February 14, 2025.)
In simple terms: management is committed to rewarding long-term ACCO stockholders.
Chart courtesy of StockCharts.com
The Lowdown on ACCO Stock
It’d be foolish to say that ACCO stock is experiencing smooth sailing these days, but it would be a bigger mistake to overlook this company. It is certainly down on the backdrop of fears regarding a slowdown in the U.S. and global economy, but there’s a solid business in place. There’s value here, and patient investors could be rewarded nicely.
Also, the management of the company is working to improve its balance sheet and making sure that income investors keep getting paid.
Is the dividend safe here?
In 2024, ACCO Brands reported free cash flow (FCF) of $132.0 million. Management also said that it continues to expect strong FCF going forward. This makes ACCO stock’s dividend safer.
I will just end with this: this $3.72 stock could provide shareholders with robust capital appreciation and income in the coming months and quarters.
