This food company beat analysts’ EPS estimates by $0.70 last quarter. Its shares have a current dividend yield of 3.07%, paid quarterly.
The J. M. Smucker Company (SJM)
From The Prudent Speculator
J M Smucker manufactures and markets food products. While the company is best known for fruit spread, SJM also produces peanut butter, canned milk, baking ingredients, juices and just about everything in between.
Smucker benefitted greatly from the pandemic-related pantry stock-up frenzy, but management remains on track with its consumer-centric growth strategy, while endeavoring to remain agile to keep up recent momentum to deliver on financial commitments.
As consumers spend more time away from the center aisles at the grocery store, we appreciate efforts to add healthier foods to the company’s brand portfolio (through both new and reformulated items).
We also like the company’s diversification via pet food offerings, while specialty coffee, Uncrustables and pantry products continue to post strong growth numbers.
We think the current price multiple of 14, compared to 5-and 10-year averages of 19, offers an attractive entry point for patient investors to add a strong stable of consumer staple brands to their portfolios, while garnering a just-increased dividend
John Buckingham, The Prudent Speculator, theprudentspeculator.com, 877-817-4394, October 2, 2020