Something's cooking atCampbell Soup (
The maker of soup, Pepperidge Farm cookies and Prego spaghetti
sauce has posted two straight quarters of accelerating sales and
profit growth after several quarters of flat-to-declining
The long-languishing stock has followed suit, rising 31% this
year, far outpacing the S&P 500.
Meanwhile, the annual dividend of $1.16 per share works out to
an annual yield of 2.6%, better than the S&P average of
CEO Denise Morrison has bolstered the company's flagship soup
business and pushed the company into new products and markets,
Campbell Soup recently acquired Bolthouse Farms, which makes
juice, salad dressing and bagged carrots. The acquisition was
behind the company's 15% sales increase in the latest quarter,
the biggest gain in years. Profit for the period rose 11%, the
best in seven quarters.
"We are strengthening our core portfolio through consistent
excellence in execution, optimized investment and sustaining
product innovation. We are also expanding into higher-growth
categories, adjacencies and geographies," Morrison said in the
company's May 20 earnings report.
Other recent acquisitions include Denmark-based Kelsen Group,
a maker of cookies and snacks for sale in 85 countries, including
China. Campbell also bought Plum Organics, a top provider of
premium organic baby food.
Campbell formed a saucer-with-handle base starting in August
2010. It cleared the 37.26 entry in early February and is testing
resistance at its 10-week line.
A pop above the line would give shareholders a follow-on
buying opportunity. The recent correction may also be part of a