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Tyson Foods Inc.TSNTOP PICKNov 20, 2013Stock price when the opinion was issued
As of Jun 16, 2026. Market Open.
TSN pays a good yield of 4%, and management has grown its dividends nicely over the past 10 years. Sales growth is expected to be modest in the next few years (low single digits), and it generates a good level of operating cash flows. Its margins have contracted over the past 12 months, and it has missed on its five past earnings results. Its balance sheet is strong, with a good cash balance of $706M and an equity position of $18.9B. It has its strengths and operates in a defensive sector. We would be comfortable with this name for income, but we do not expect much in the way of growth in the near to intermediate term.
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Chicken, beef, and pork. Packaged and sold to grocery stores. Used to be a very volatile stock. Depended on commodity prices in the past. A new management team improved them. They now have a strong business model and trade at 11 times earnings.