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I’d buy this FTSE 250 dividend growth stock in a Stocks and Shares ISA

It’s impossible to speculate with any degree of certainty when the share market rout will end. That doesn’t suggest a lack of tantalising buying opportunities out there, though.

Accurately predicting the bottom of any market collapse is tricky in times of any social, economic, or political catastrophe. It’s particularly difficult now as the world battles the biggest public health crisis in exactly a century.

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Still, trying to time trades to the very best moment isn’t a problem that long-term investors should be tackling. The key to successful stock investing is by buying shares with a view to holding them for anything from 10 years to a few decades. Over that timescale, buying a share at its very-lowest price is unlikely to make a big dent in overall returns.

More contract news

The most important point is that you just need to get the ball in play. And ongoing risk aversion on equity markets has bolstered the appeal of some truly-brilliant share market heroes.

Take Avon Rubber as an example. I recently explained why this is a top stock for even the most nervous investors, and recent newsflow from the business illustrates why.

Defence spending is one of the most stable segments in terms of government spending, irrespective of macroeconomic trouble. In fact, Avon, which predominately makes safety masks for armies, police forces, and security services, announced news of $20m order with the US this week.

The order, shipments under which will begin in early 2021, came as part of the Enhanced Small Arms Protective Inserts body armour contract with the US Defense Logistics Agency. Said contract was built with a maximum value of $333m over a possible three-and-a-half years.

Reassuringly expensive

Such is the dependable nature of arms demand, City analysts still expect Avon to keep growing the bottom line through to the end of the next fiscal year at least (to September 2021). This means that it still trades on an elevated forward price-to-earnings (P/E) ratio, of 24.1 times.

But forget about this hefty paper multiple, I say. A firm with such delicious defensive capabilities warrants a rating higher than that of the broader market, I say. It’s a lifeboat in what promises to be a tough year or two for the global economy.

I’d also buy the business on account of its market-leading protective products, demand for which is soaring with customers all over the globe. Annual revenues rose by more than 8% in financial 2019 as a result.

Dividend star

I also consider Avon to be a particularly attractive pick for income chasers.

Ignore its low yields of 1.1% and 1.4% for this financial year and next respectively. This is a company whose bright earnings outlook and strong cash flows are leading brokers to predict more weighty dividend growth, too.

Keeping its long record of big yearly bumps going, Avon increased the payout 30% last time, out to 20.83p per share. And City forecasters expect rewards to rise to 27.1p this year and again to 34.6p in fiscal 2021. This is a brilliant long-term buy for Stocks and Shares ISA investors, and particularly those seeking increasingly chunky dividends.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Avon Rubber. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.