Tupperware Brands Corporation ( TUP - Snapshot Report ) has increased its dividend three times since 2009 and currently pays a regular quarterly dividend that yields 2.1% annually. Moreover, following strong third quarter results, this maker of food storage containers and home products has been consistently trading above $60 per share and is seeing a rise in earnings estimates.

With a solid dividend yield and an expected long term earnings growth of 12%, this Zacks Rank #2 (Buy) appears to be a promising pick for investors seeking both growth and income.

Healthy Beat in Q3

On Oct 24, Tupperware reported third-quarter earnings of 95 cents per share, beating the Zacks Consensus Estimate by 6% and exceeding last year’s performance by 14%. The company enjoyed strong results from the emerging markets of Asia-Pacific.

Revenues, however, dipped 1.4% year over year to $594.4 million due to unfavorable currency translation impact. Excluding the currency impact, sales rose 6% in the quarter.

Sales in Asia-Pacific climbed 10% on a reported basis to $197.5 million with strong growth registered across Indonesia (up 30%) and India (up 50%). China and Malaysia posed double-digit growth in the quarter. The growing middle class in the region is driving demand for the company’s storage and other products.

Tupperware, however, witnessed lower sales from Europe and North America in the third quarter. Revenues from Latin America rose 7% with sales from both Brazil and Venezuela surging 30% in the quarter.

Tupperware is slated to release its fourth quarter and fiscal 2012 results on Jan 29. For the fourth quarter, the company anticipates earnings between $1.66 and $1.71 per share and expects sales growth of 5%-7% in local currency. The Zacks Consensus Estimate for the fourth quarter is currently pegged at $1.68.

For fiscal 2012, earnings are expected at $4.94 to $4.99 per share. Sales growth in local currency is projected at 5% for the year. The Zacks Consensus Estimate for the year is $4.98, well above the guided range.

The company expects sales growth between 5% and 7% in fiscal 2013. More insight will be provided in the upcoming fourth quarter results.

Earnings Estimates

The Zacks Consensus Estimate for 2012 is up 0.4% over the past 60 days to $4.98 per share, suggesting year-over-year growth of roughly 11.81%.

The Zacks Consensus Estimate for 2013 has advanced 0.5% in that time to $5.56 per share, reflecting year over year growth of around 11.7%.

Attractive Dividend Payout

Tupperware has been a consistent payer of quarterly dividends since going public in 1996. After maintaining a steady quarterly dividend of 22 cents per share since 1996, the company first hiked its dividend by 14% to 25 cents per share in October 2009. Following two subsequent hikes of 20% in Nov 2010 and Feb 2012, the dividend currently stands at 36 cents per share. The most recent payout of the quarterly dividend was on Dec 31, affirming a solid yield of 2.1%.

With a net margin of 8.1%, well ahead of other companies in the consumer products industry such as Newell Rubbermaid Inc. (NWL), Energizer Holdings Inc. (ENR) and Kimberly-Clark Corporation (KMB), Tupperware has ample scope to further increase its dividend.

Reasonable Valuation

Tupperware’s valuation looks reasonable on a P/E basis. Shares are currently trading at a forward P/E of 12.17x, a slight discount to the peer group average of 12.92x. Moreover, its trailing twelve months P/E of 14.12x is a tad lower than the peer group average of 14.13x. Tupperware also has a 1-year ROE of 54.4%, which is well above its peer group average of 22.1%, reflecting efficient capital deployment.

Tupperware’s shares have bounced back sharply to $67.65 as of Jan 22, 2012 from as low as $11.40 in March 2009. The gap between earnings estimates for 2012, 2013 and 2014 should attract investors. As the earnings estimates move higher, the stock is likely to follow suit. The stock has generated a year-to-date return of 5.54%, higher than the S&P 500’s return of 4.74%.

Tupperware Brands Corporation makes and distributes a range of storage and serving solutions, kitchen cookware, microwave products and microfiber textiles under the Tupperware brand. It also offers beauty and personal care products as well as nutritional products under a host of brands. The company, which has a market cap of $3.74 billion, markets its products globally through an independent sales force of 2.8 million.

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