Our first idea today is a food distributor who beat EPS estimates by $0.10 last quarter and has a 6.8% annual dividend yield, paid quarterly. Our second recommendation is a sale of a previous pick whose shares are not recovering fast enough.
B&G Foods, Inc. (BGS)
From Cabot Dividend Investor
While we may be talking and speculating about the election, the market just cares about money. It doesn’t really care about politics, but it cares a great deal about that vaccine. Keep an eye on that one.
The stock of packaged food company B&G Foods has been on a ride recently. After soaring about 70% for the year, BGS pulled back over 15% from the high during the recent market selloff. It is rebounding and has moved up over 5% from the recent low. Operationally, things are terrific. Volume sales were up 34.5% in the second quarter. And the eat-at-home trend is widely expected to continue beyond the pandemic. The stock is also still relatively cheap despite the big YTD move. Currently under 30 per share, this was a 50 stock a few years ago. And things are vastly improved since then. An under 30 price makes BGS a buying opportunity. BUY
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, September 23, 2020