A Better Investment Than Dean Foods Co (DF)?

As far as Tyson Foods, Inc. (NYSE:TSN) is concerned, it’s well diversified between chicken, beef, and pork, owning market shares of 22%, 21%, and 17%, respectively. However, competition is fierce. The only way to gain market share is to increase marketing, but this will hurt margins, which are already unimpressive.

If you happen to be a dividend investor, then there’s no question that ConAgra Foods, Inc. (NYSE:CAG) is the place to be. Not only does the dividend appear to be safe, but ConAgra is likely to be the most resilient stock thanks to its sheer size and broad product diversification. ConAgra is currently yielding 2.70%, Tyson Foods, Inc. (NYSE:TSN) yields 0.70%, and Dean Foods Co (NYSE:DF) doesn’t offer any yield at this time.

Conclusion

Why invest in Dean Foods Co (NYSE:DF) when it doesn’t offer top-line growth and there are stronger businesses available? Tyson Foods, Inc. (NYSE:TSN) is a well-managed company with strong diversification in its meat segments.

With the acquisition of Ralcorp, ConAgra Foods, Inc. (NYSE:CAG) has gone from a great company to a dominant force. Fundamentals are strong, company culture is impressive, top-line growth is solid, and its dividend payments should remain intact. For me, ConAgra Foods is the stock to own.

The article A Better Investment Than Dean Foods? originally appeared on Fool.com.

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