Cameron Hurst
B&G Foods Inc.
BGS-N
DON'T BUY
Feb 08, 2018
It does not check the technical boxes. The dividend is juicy but when it all comes together the total return has not been very good for you. If it does not work in good markets you should ask tough questions.
The food group (that includes Campbell's Soups) has come down too far too hard. The dividend is safe and can even grow. Business has been better than expected.
They had a poor quarter and weak guidance,which happens to a lot of food companies, but this pays a 6.5% dividend. They never cut the dividend in the bad days. It is leaderless now.
The only staple she owns. They passed costs onto consumers last year. Can they sustain those prices. Up 40% YTD on this, but down 40% in the past year.
It does not check the technical boxes. The dividend is juicy but when it all comes together the total return has not been very good for you. If it does not work in good markets you should ask tough questions.