At its fourth quarter 2013 conference call,
B&G Foods, Inc.
) announced that its balance sheet is in excellent health at the
end of the quarter.
The strong cash position allowed B&G Foods to announce yet
another increase in its quarterly dividend. The board of
directors of B&G Foods approved a 3.0% increase in its
quarterly dividend. This marks the 38th consecutive quarterly
dividend hike since the company's initial public offering in Oct
The quarterly dividend was increased from 33 cents to 34 cents
per common share, equivalent to an annual dividend of $1.36 per
share for full year 2014, up from $1.32 per share in 2013. The
new dividend will yield 4.5% annually. The first quarterly
dividend will be paid on Apr 30, 2014 to shareholders as of Mar
Other than returning values to shareholders, the company uses its
cash for mergers and acquisitions. In Oct 2013, the company
acquired Rickland Orchards LLC from Natural Instincts LLC - one
of the sought-after makers of Greek yogurt-coated granola bars
and bites for $57.5 million.
This acquisition will open up opportunities for B&G Foods
in the protein-packed snacks category. B&G Foods is all set
to beef up its snack offerings inorganically as evident from its
three acquisitions in the last one year, including Pirate Brands
from Robert's American Gourmet Food, TrueNorth from DeMet's Candy
Company and New York Style and Old London from Chipita America.
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Other Stocks to Consider
B&G Foods currently carries a Zacks Rank #4 (Sell).
Better-ranked food stocks include
J&J Snack Foods Corp
The Hain Celestial Group Inc.
Post Holdings, Inc.
). All these stocks carry a Zacks Rank #2 (Buy).