At its fourth quarter 2013 conference call, B&G Foods, Inc. (BGS) announced that its balance sheet is in excellent health at the end of the quarter.
The strong cash position allowed B&G Foods to announce yet another increase in its quarterly dividend. The board of directors of B&G Foods approved a 3.0% increase in its quarterly dividend. This marks the 38th consecutive quarterly dividend hike since the company’s initial public offering in Oct 2004.
The quarterly dividend was increased from 33 cents to 34 cents per common share, equivalent to an annual dividend of $1.36 per share for full year 2014, up from $1.32 per share in 2013. The new dividend will yield 4.5% annually. The first quarterly dividend will be paid on Apr 30, 2014 to shareholders as of Mar 31, 2014.
Other than returning values to shareholders, the company uses its cash for mergers and acquisitions. In Oct 2013, the company acquired Rickland Orchards LLC from Natural Instincts LLC – one of the sought-after makers of Greek yogurt-coated granola bars and bites for $57.5 million.
This acquisition will open up opportunities for B&G Foods in the protein-packed snacks category. B&G Foods is all set to beef up its snack offerings inorganically as evident from its three acquisitions in the last one year, including Pirate Brands from Robert's American Gourmet Food, TrueNorth from DeMet’s Candy Company and New York Style and Old London from Chipita America.
Other Stocks to Consider
B&G Foods currently carries a Zacks Rank #4 (Sell). Better-ranked food stocks include J&J Snack Foods Corp. (JJSF), The Hain Celestial Group Inc. (HAIN) and Post Holdings, Inc. (POST). All these stocks carry a Zacks Rank #2 (Buy).
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