7 Best Debt Free Dividend Stocks To Buy

5. Cal-Maine Foods, Inc. (NASDAQ:CALM)

Dividend Yield as of August 16: 2.67%

Market Cap as of August 16: $3.47 billion 

Enterprise Value as of August 16: $2.66 billion 

Cal-Maine Foods, Inc. (NASDAQ:CALM) is the largest producer and distributor of fresh shell eggs in the US. The company’s operations faced mild disruptions due to highly pathogenic avian influenza (HPAI). Despite these challenges, they successfully fulfilled customer demands. Over the year, the company stayed committed to its growth strategy, providing a product mix that aligned with customer needs. The operations were performed efficiently, and a strong focus was maintained on achieving operational excellence. Since the start of 2024, the stock returned 24.8% and its 12-month returns came in at over 48%.

Cal-Maine Foods, Inc. (NASDAQ:CALM)’s strong performance is evident in the completion of two asset acquisitions during fiscal 2024, with an additional acquisition finalized after the fiscal year ended. Each acquisition aligns with the company’s organic growth initiatives. The company is enthusiastic about the new assets, including those of Fassio Egg Farms, Inc. in Erda, Utah, and the former broiler processing plant, hatchery, and feed mill in Dexter, Missouri, previously operated by Tyson Foods. The demand for the company’s products is evident through the recent acquisitions it has made. Diamond Hill Capital also highlighted this in its Q3 2023 investor letter. Here is what the firm has to say:

“On an individual holdings’ basis, top contributors to return in Q3 included Civitas Resources and Cal-Maine Foods, Inc. (NASDAQ:CALM). Fresh egg producer Cal-Maine Foods has positioned itself well to capitalize on the growing trend toward cage-free and specialty eggs. In May, the US Supreme Court upheld Proposition 12, whereby California can dictate only cage-free eggs be sold in the state — an outcome which will likely open the door for other states to either institute or maintain similar mandates, and which should drive increased long-term demand for Cal-Maine Foods’ eggs.”

Cal-Maine Foods, Inc. (NASDAQ:CALM) has been paying variable dividends since the third quarter of 2008. Though its dividend policy remained unstable during the years following the pandemic, it still got back on its feet with its payouts. In the most recent quarter, it returned $37.8 million to shareholders through dividends. Currently, it pays a quarterly dividend of $0.77 per share and has a dividend yield of 2.67%, as of August 16.

At the end of June 2024, 25 hedge funds owned stakes in Cal-Maine Foods, Inc. (NASDAQ:CALM), up from 24 in the previous quarter, as per Insider Monkey’s database. These stakes have a total value of nearly $260 million. With over 2.1 million shares, Renaissance Technologies was the company’s leading stakeholder in Q2.