Food stocks are not generally issues that whet the appetites
of growth investors. ButB&G Foods (
) does offer growth, as well as a juicy dividend yield.
While the name B&G Foods may not ring a bell, the
Parsippany, N.J.-based company makes products that may be in your
fridge or pantry. Its long list of offerings include Cream Of
Wheat, Molly McButter, Mrs. Dash and Ortega Mexican food
Since coming public in 2007, the company has delivered profit
growth in all but one year. B&G's earnings fell 21% in 2008,
but grew by double digits the next four years. It has a
three-year earnings growth rate of 29%, which is bigger than that
of giantsGeneral Mills (
) andH.J. Heinz (
). B&G also has a three-year Earnings Stability Factor of 5,
indicating a rock steady record of profits.
A slew of acquisitions have helped drive growth over the year.
B&G recently completed its buyout of a couple of food brands
from Chipita America for about $62.5 million in cash.
The company also boasts a return on equity of 22.4% for 2012,
down slightly from 22.8% in 2011.
B&G has ramped up its dividend in the past two years. It
has lifted its quarterly payout by 71% to 29 cents a share from
17 cents a share in early 2011. The company last hiked its payout
On an annual basis, B&G pays $1.16 a share, which works
out to a yield of about 3.7% at current levels. Only rivalKraft
Foods Group (
) offers a higher yield in the Foods-Packaged group.
B&G broke out from a cup with handle in February, but that
quickly failed. It's now forming a new consolidation with a
potential buy point at 33.24. The long sideways action has
punched its RS Rating down to a 56.