J.M. Smucker Tests Support At 10-Week Line

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With market conditions turning rocky, income investors may want to look at food stocks, which tend to be better performers when the environment gets wild. One such issue is the J.M. Smucker Co. ( SJM )

The stock has a beta of 0.66, meaning that it has about one-third less day-to-day price volatility than a market index such as the S&P 500. J.M. Smucker has pulled back to test support at its 10-week moving average in mostly tame volume.

It's also close to forming a second-stage flat base with a 105.28 buy point. The stock last broke out from a flat base in November.

J.M. Smucker is best known for its jellies, jams and preserves. But the company also owns a variety of brand-name food products such as Folgers coffee, Crisco cooking oil and Hungry Jack pancake mixes.

Helped by a string of acquisitions, J.M. Smucker has posted higher earnings each year since 2002. In 2008, it merged with Folgers, which was a subsidiary ofProcter & Gamble ( PG ). In 2011, the company bought a number of Hispanic food brands from privately held Rowland Coffee Roasters.

Last year, it acquired Sara Lee's food service and hot beverage business. The firm's total sales more than doubled since 2008.

J.M. Smucker has a five-year Earnings Stability Factor of 6, signaling a rock-steady stream of profits.

The company has paid dividends since 1960. It currently pays 52 cents a share each quarter. On an annual basis, it pays $2.08 a share, giving it a yield of about 2%. J.M. Smucker last raised its cash dividend in July.

Although J.M. Smucker has one of the lowest yields among the 18 dividend-paying stocks in the Food-Packaged group, it has one of the highest Composite Ratings at 80.



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: PG , SJM

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