Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of R.R. Donnelly & Sons were stacking higher, gaining as much as 17% after an impressive second-quarter earnings report.

So what: The packaging and printing specialist hit a two-year high as adjusted earnings per share reached $0.45, better than estimates of $0.42. Sales also improved 1.7% to $2.6 billion, better than expectations as well. R.R. Donnelly reaffirmed its guidance for the year, with improving free cash flow, and garnering confidence from the market. Organic revenue declined 0.8% in the quarter, but that's still an improvement from previous quarters as the printing industry continues to wilt.


Now what: With R.R. Donnelly's dividend yield near 6%, it's clear what investors are after here. The solid growth in free cash flow will help keep those quarterly checks rolling in, but otherwise, the company's appeal to investors seems limited. Shares have more than doubled this year, but seem like they could be ready for a breather as this is essentially a no-growth company with a double-digit forward P/E. Dividend investors may look this stock, but otherwise I'd look for more growth.

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notability of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of the only nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


The article Why R.R. Donnelly Shares Popped originally appeared on Fool.com.

Fool contributor Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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