Here are 2 reasons why I like the Endeavour share price today

The Endeavour share price has performed far better than the ASX 200 over the past year.

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Key points
  • Endeavour shares have had a dream start to independent ASX life
  • The consumer staples share has bested the market in 2022 thus far, and since its listing last year
  • Here are 2 reasons why I like the Endeavour share price going forward

The Endeavour Group Ltd (ASX: EDV) share price has been one of the better performers on the S&P/ASX 200 Index (ASX: XJO) in recent times. Although Endeavour shares have only been on the ASX boards for a little over a year, the company has certainly made a big impact.

The Endeavour share price is currently trading at $7.80, down 0.95% for the day so far. But that still puts Endeavour up almost 15% year to date in 2022 thus far.

It also means Endeavour shares have risen 12.7% over the past 12 months, and a pleasing 28% since the company first listed in its own right back in June 2021.

In contrast, the ASX 200 remains down 7.5% in 2022 thus far, and down by 6.84% over the past 12 months. So Endeavour has been a bona fide market beater.

So we've already established that Endeavour has the capacity to outperform the broader markets. But here are two more reasons why I like the Endeavour share price for investment today.

A group of young friends celebrating and toasting with beers

Image source: Getty Images

The first reason why I like the Endeavour share price: Dividends

The first is dividends. So Endeavour used to be part of Woolworths Group Ltd (ASX: WOW) before it was spun out last year. Woolworths shares have always been a solid income investment, and today the company has a dividend yield of 2.46%.

But since Endeavour left the Woolworths nest, it has taken its dividends to the next level. Its first dividend was the final payment of 7 cents per share, fully franked, that investors received in September last year.

This year, Endeavour upped the ante, delivering an interim dividend of 12.5 cents per share, also fully franked. That's an increase of close to 80% on its first payment.

Today, these payments give Endeavour a trailing dividend yield of 3.21%. That's a solid yield and one that exceeds what its old parent company currently has on the table.

The second reason: The nature of the business

The second reason I like the Endeavour share price today is the inherent nature of the business. Endeavour is a consumer staples company that primarily sells alcoholic beverages.

Its BWS and Dan Murphy's bottle shop chains are well known in Australia and have considerable market share and brand recognition. Alcohol is a vice and sales tend to be fairly stable, regardless of the economic climate.

This makes Endeavour a very recession-resistant company that will likely prosper in good times and bad. And that makes it a useful addition to any ASX share portfolio in my view. 

So that's why I like the look of the Endeavour share price today. The company has had a very successful start to ASX life on its own terms, and I don't see any reason why this success can't continue.

At the current Endeavour share price, this ASX 200 company has a market capitalisation of $14.09 billion.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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