3 reasons to hold onto your Amcor Limited shares

Amcor’s shares have fallen marginally but look set to climb much, much higher.

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Shares in global packaging group Amcor Limited (ASX: AMC) have performed strongly over the last month or so, having jumped from a low of $9.95 to as high as $10.61 last week. They have since retracted slightly to $10.36, giving you a fantastic opportunity to buy.

Here are three reasons Amcor should to be in your portfolio:

  1. Amcor is one of Australia’s largest and strongest companies with a market capitalisation of $12.6 billion. The stock is far less susceptible to volatility than smaller companies and would help form a solid foundation for your portfolio, it also offers a 3.8% dividend yield.
  2. Having demerged from its Australasian and Packing Distribution Group Orora Ltd (ASX: ORA) last year, Amcor can increase its focus on operations in emerging economies that possess greater growth potential. It increased sales in China by 18% in the six months ending 31 December 2013.
  3. The Australian dollar is still well above its historical highs at around US93c. As the dollar drops, Amcor will continue to benefit.
Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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