Flower Foods, Campbell Soup Serve Up Tasty Yields

By
A A A

With the market getting more rocky, it makes sense for income investors to check out high-yielding stocks with low volatility.Flower Foods ( FLO ) andCampbell Soup ( CPB ) are two such issues.

Flower Foods rallied to an all-time high Wednesday after Reuters reported the firm is set to buy a number of bread labels from the bankrupt Hostess Brands for $360 million. The deal includes the iconic Wonder Bread, as well as Home Pride and Nature's Pride.

Thomasville, Ga.-based Flower Floods makes breads, rolls and snack cakes labels such as Cobblestone Mill, Nature's Own and Sunbeam.

Flower Foods has a beta of 0.34, signaling that it has lower volatility than a market proxy such as the S&P 500. The S&P 500's beta is 1.

The stock pays 64 cents a share on an annual basis, which works out to a yield of about 2.3%.

Campbell Soup isn't normally a fast mover, but it has been hot this year. The stock is at a six-year high and on pace for a seventh straight weekly gain. But Campbell Soup is extended after clearing a shallow cup base in early February.

With a beta of 0.46, Campbell Soup has a little less than half of the volatility of the S&P 500. The stock has outperformed the S&P 500 by more than 2 to 1 this year.

Campbell Soup pays a quarterly dividend of 29 cents a share, or $1.16 a share on an annual basis. It has a yield of 2.9%.

The company's earnings slipped 4% to $2.45 a share in its fiscal 2012 ending in July, but analysts polled by Thomson Reuters see profit rising 4% in fiscal 2013.

Campbell recently outlined growth strategies, such as expanding its overseas presence and growing its healthy beverages and snacks business.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: CPB , FLO

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos

Stocks

Referenced

100%
67%

Most Active by Volume

91,252,153
  • $13.78 ▼ 4.31%
68,133,496
  • $12.93 ▲ 6.77%
57,268,074
  • $46.13 ▲ 2.47%
43,432,023
  • $105.22 ▲ 0.37%
40,880,685
  • $13.46 ▲ 8.90%
40,712,405
  • $98.62 ▲ 0.82%
39,776,976
  • $16.72 ▲ 0.72%
34,688,871
  • $11.16 ▲ 3.05%
As of 10/24/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com