5 Best Food Dividend Stocks to Buy Now

In this article, we will discuss 5 best food dividend stocks to buy now. If you want to read our detailed analysis of the food industry and its outlook, go directly to read 12 Best Food Dividend Stocks to Buy Now. 

5. The J. M. Smucker Company (NYSE:SJM)

Dividend Yield as of November 2: 2.73%

The J. M. Smucker Company (NYSE:SJM) is an Ohio-based manufacturer of food and beverage products that specializes in consumer foods, pet foods, and coffee. The company is one of the best dividend stocks on our list as it has raised its dividends consistently for the past 21 years. It currently pays a quarterly dividend of $1.02 per share and has a dividend yield of 2.73%, as of November 2.

In fiscal Q1 2023, The J. M. Smucker Company (NYSE:SJM) reported revenue of $1.8 billion, which showed a 0.5% growth from the same period last year. The company generated $39 million in operating cash flow. It ended the quarter with $151.6 million in cash and cash equivalents.

At the end of Q2 2022, 35 hedge funds tracked by Insider Monkey owned stakes in The J. M. Smucker Company (NYSE:SJM), up from 29 in the previous quarter. These stakes have a collective value of over $711.7 million. Among these hedge funds, Renaissance Technologies was the company’s largest stakeholder in Q2.

4. Kellogg Company (NYSE:K)

Dividend Yield as of November 2: 3.11%

Kellogg Company (NYSE:K) is an American multinational food manufacturing company that mainly specializes in cereals and snacks. In Q3 2022, the company reported a 13% growth in its organic sales, and its revenue came in at $4 billion. Its operating cash flow came in at $1.18 billion, up from $1.14 billion from the prior-year quarter. During the quarter, it paid $596 million to shareholders in dividends.

On October 28, Kellogg Company (NYSE:K) declared a quarterly dividend of $0.59 per share. The company has been making regular dividend payments to shareholders since 1925, which makes it one of the best dividend stocks on our list. Moreover, it has been raising its dividends consistently for the past 18 years. As of November 2, the stock has a dividend yield of 3.11%.

In August, RBC Capital raised its price target on Kellogg Company (NYSE:K) to $71 with a Sector Perform rating on the shares, highlighting the company’s consistent performance this year.

The number of hedge funds tracked by Insider Monkey owning stakes in Kellogg Company (NYSE:K) grew to 25 in Q2 2022, from 22 in the previous quarter. These stakes have a total value of over $340.7 million.

3. Flowers Foods, Inc. (NYSE:FLO)

Dividend Yield as of November 2: 3.11%

Flowers Foods, Inc. (NYSE:FLO) is a Georgia-based producer and marketer of packed bakery foods and operates over 47 bakeries across the country. The company is one of the best dividend stocks on our list as it has been raising its payouts consistently for the past 20 years. Currently, it pays a quarterly dividend of $0.22 per share and has a dividend yield of 3.11%, as of November 2.

During the first half of 2022, Flowers Foods, Inc. (NYSE:FLO) paid over $93.4 million to shareholders in dividends, compared with $89 million paid six months ago. The company reported $162.5 million in cash and cash equivalents at the end of the second quarter. Its revenue for the quarter came in at $1.13 billion, up 10.8% from the same period last year.

As of the close of Q2 2022, 24 hedge funds in Insider Monkey’s database owned stakes in Flowers Foods, Inc. (NYSE:FLO), compared with 25 a quarter earlier. These stakes have a collective value of $327.7 million. Renaissance Technologies owned the largest position in the company in Q2.

Chartwell Investment Partners mentioned Flowers Foods, Inc. (NYSE:FLO) in its Q2 2022 investor letter. Here is what the firm has to say:

“Value based stocks outperformed stocks with higher price-to-earnings ratios (“P/E”)*****, with large growth stocks being the worst performers this quarter; the Russell 1000 Growth index fell 20.9%. The three best performers for Q2 in the Growth and Balanced accounts includes Flowers Foods, Inc. (NYSE:FLO, 2.7%)****, up 3.3%. Flowers is a primarily baked-goods company with strong revenue growth.”

2. Conagra Brands, Inc. (NYSE:CAG)

Dividend Yield as of November 2: 3.68%

Conagra Brands, Inc. (NYSE:CAG) is a consumer packaged goods holding company, headquartered in Chicago, US. Deutsche Bank appreciated the company’s fiscal Q1 earnings and its portfolio construction and margin recovery. The firm raised its price target on the stock in October to $33 with a Neutral rating on the shares.

In fiscal Q1 2023, Conagra Brands, Inc. (NYSE:CAG) reported revenue of $3 billion, which showed a 9.4% growth from the same period last year. The company’s operating cash flow came in at over $263.7 million, compared with $140 million during the same period last year. It also paid $150 million to shareholders in dividends during the quarter.

On October 5, Conagra Brands, Inc. (NYSE:CAG) declared a quarterly dividend of $0.33 per share, in line with its previous dividend. The company has been growing its dividends consistently for the past three years. As of November 2, it has a dividend yield of 3.68%.

The number of hedge funds tracked by Insider Monkey owning positions in Conagra Brands, Inc. (NYSE:CAG) stood at 30 in Q2 2022, up from 22 in the previous quarter. The stakes owned by these hedge funds have a consolidated value of over $603.4 million.

1. The Kraft Heinz Company (NASDAQ:KHC)

Dividend Yield as of November 2: 4.20%

The Kraft Heinz Company (NASDAQ:KHC) is one of the largest food companies in America. It specializes in a wide range of food products and sells them globally. The company has been offering dividends to shareholders even before the merger of Kraft and Heinz in 2015, which places it as one of the best dividend stocks on our list. It pays a quarterly dividend of $0.40 per share for a dividend yield of 4.20%, as of November 2.

In Q3 2022, The Kraft Heinz Company (NASDAQ:KHC) reported revenue of $6.5 billion, which showed a 2.8% growth from the same period last year. Year-to-date, the company’s operating cash flow came in at $1.5 billion and its operating cash flow stood at $885 million. At the end of September, it had $997 million in cash and cash equivalents.

Goldman Sachs upgraded The Kraft Heinz Company (NASDAQ:KHC) to Buy with a $43 price target this October. The firm believes that the company is structurally better positioned today with reduced private label exposure and lowered leverage levels.

At the end of Q2 2022, 41 hedge funds tracked by Insider Monkey owned stakes in The Kraft Heinz Company (NASDAQ:KHC), worth over $13.6 billion. In the previous quarter, 35 hedge funds owned positions in the food company, with stakes valued at over $13.4 billion.

You can also take a look at 12 Best Bank Dividend Stocks To Invest In and 15 Best NASDAQ Dividend Stocks To Buy

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