One of my favorite industries within the consumer goods sector is the processed and packaged goods industry. Only 35 companies have a relationship to the industry and 17 of them pay dividends.
I love the industry because of the high number of low beta stocks. Foods and consumer goods are daily consumption products with essential functions. Consumers don’t stop washing or cooking if the economy is going down. Sure, if they lose their job they need to look for cheaper products or scout for less services and quality but they don’t stop consuming. That’s also the reason why I love the processed and packaged goods industry. Car purchases will be deferred but toilet paper and deodorant buys not in the same way.
Linked is a small list of the highest dividend paying processed and packaged goods stocks. Twelve of them have a current buy or better recommendation.
Here are my favorite stocks:
General Mills (GIS) has a market capitalization of $29.90 billion. The company employs 35,000 people, generates revenue of $16.657 billion and has a net income of $1.5 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.103 billion. The EBITDA margin is 18.63% (the operating margin is 15.38% and the net profit margin 9.01%).
Financial Analysis: The total debt represents 35.22% of the company’s assets and the total debt in relation to the equity amounts to 115.70%. Due to the financial situation, a return on equity of 24.51% was realized. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, the company paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.06, the P/S ratio is 1.79 and the P/B ratio is finally 4.67. The dividend yield amounts to 2.85% and the beta ratio has a value of 0.17.
Kellogg Company (K) has a market capitalization of $22.51 billion. The company employs 31,000 people, generates revenue of $14.197 billion and has a net income of $962 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.010 billion. The EBITDA margin is 14.16% (the operating margin is 11% and the net profit margin 6.78%).
Financial Analysis: The total debt represents 52.04% of the company’s assets and the total debt in relation to the equity amounts to 326.66%. Due to the financial situation, a return on equity of 45.60% was realized. Twelve trailing months earnings per share reached a value of $2.68. Last fiscal year, the company paid $1.74 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.24, the P/S ratio is 1.60 and the P/B ratio is finally 9.29. The dividend yield amounts to 2.83% and the beta ratio has a value of 0.47.
Campbell Soup (CPB) has a market capitalization of $13.07 billion. The company employs 17,700 people, generates revenue of $7.707 billion and has a net income of $764.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.472 billion. The EBITDA margin is 19.10% (the operating margin is 15.73% and the net profit margin 9.91%).
Financial Analysis: The total debt represents 42.73% of the company’s assets and the total debt in relation to the equity amounts to 310.69%. Due to the financial situation, a return on equity of 77.44% was realized. Twelve trailing months earnings per share reached a value of $2.33. Last fiscal year, the company paid $1.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.88, the P/S ratio is 1.70 and the P/B ratio is finally 15.29. The dividend yield amounts to 2.79% and the beta ratio has a value of 0.28.
McCormick (MKC) has a market capitalization of $9.39 billion. The company employs 9,000 people, generates revenue of $4.014 billion and has a net income of $386.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $681.10 million. The EBITDA margin is 16.97% (the operating margin is 14.41% and the net profit margin 9.62%).
Financial Analysis: The total debt represents 28.13% of the company’s assets and the total debt in relation to the equity amounts to 69.63%. Due to the financial situation, a return on equity of 24.83% was realized. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, the company paid $1.24 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.29, the P/S ratio is 2.12 and the P/B ratio is finally 5.58. The dividend yield amounts to 1.92% and the beta ratio has a value of 0.42.
Take a closer look at the full list of the highest dividend paying processed and packaged goods stocks. The average P/E ratio amounts to 19.99 and forward P/E ratio is 16.43. The dividend yield has a value of 2.38 percent. The P/B ratio is 4.58 and P/S ratio is 1.45. The operating margin amounts to 10.62% and the beta ratio is 0.86. Stocks from the list have an average debt to equity ratio of 6.44 thanks to the high value from Mead Johnson. Excluded by this extraordinary high value, the figure is 1.12.
Related stock ticker symbols:
BGS, GLDC, JVA, CAG, GIS, K, CPB, UN, LNCE, FLO, SJM, MKC, MJN, INGR, HSH, MGPI, JJSF
Selected Articles:
· 19 Consumer Dividend Stocks With Highest Sector Growth
· The Most Recommended Consumer Goods Stocks
· Best Consumer Stock Picks For 2013
· The Best Consumer Goods Stocks To Buy
* If you like to receive more news and regular dividend updates, you should subscribe to my free E-Mail list. Alternative, you can follow me onFacebookor Twitter.
* The highest yielding processed and packaged goods stocks originally published at "long-term-investments.blogspot.com".
I love the industry because of the high number of low beta stocks. Foods and consumer goods are daily consumption products with essential functions. Consumers don’t stop washing or cooking if the economy is going down. Sure, if they lose their job they need to look for cheaper products or scout for less services and quality but they don’t stop consuming. That’s also the reason why I love the processed and packaged goods industry. Car purchases will be deferred but toilet paper and deodorant buys not in the same way.
Linked is a small list of the highest dividend paying processed and packaged goods stocks. Twelve of them have a current buy or better recommendation.
Here are my favorite stocks:
General Mills (GIS) has a market capitalization of $29.90 billion. The company employs 35,000 people, generates revenue of $16.657 billion and has a net income of $1.5 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.103 billion. The EBITDA margin is 18.63% (the operating margin is 15.38% and the net profit margin 9.01%).
Financial Analysis: The total debt represents 35.22% of the company’s assets and the total debt in relation to the equity amounts to 115.70%. Due to the financial situation, a return on equity of 24.51% was realized. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, the company paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.06, the P/S ratio is 1.79 and the P/B ratio is finally 4.67. The dividend yield amounts to 2.85% and the beta ratio has a value of 0.17.
Kellogg Company (K) has a market capitalization of $22.51 billion. The company employs 31,000 people, generates revenue of $14.197 billion and has a net income of $962 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.010 billion. The EBITDA margin is 14.16% (the operating margin is 11% and the net profit margin 6.78%).
Financial Analysis: The total debt represents 52.04% of the company’s assets and the total debt in relation to the equity amounts to 326.66%. Due to the financial situation, a return on equity of 45.60% was realized. Twelve trailing months earnings per share reached a value of $2.68. Last fiscal year, the company paid $1.74 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.24, the P/S ratio is 1.60 and the P/B ratio is finally 9.29. The dividend yield amounts to 2.83% and the beta ratio has a value of 0.47.
Campbell Soup (CPB) has a market capitalization of $13.07 billion. The company employs 17,700 people, generates revenue of $7.707 billion and has a net income of $764.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.472 billion. The EBITDA margin is 19.10% (the operating margin is 15.73% and the net profit margin 9.91%).
Financial Analysis: The total debt represents 42.73% of the company’s assets and the total debt in relation to the equity amounts to 310.69%. Due to the financial situation, a return on equity of 77.44% was realized. Twelve trailing months earnings per share reached a value of $2.33. Last fiscal year, the company paid $1.16 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.88, the P/S ratio is 1.70 and the P/B ratio is finally 15.29. The dividend yield amounts to 2.79% and the beta ratio has a value of 0.28.
McCormick (MKC) has a market capitalization of $9.39 billion. The company employs 9,000 people, generates revenue of $4.014 billion and has a net income of $386.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $681.10 million. The EBITDA margin is 16.97% (the operating margin is 14.41% and the net profit margin 9.62%).
Financial Analysis: The total debt represents 28.13% of the company’s assets and the total debt in relation to the equity amounts to 69.63%. Due to the financial situation, a return on equity of 24.83% was realized. Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, the company paid $1.24 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.29, the P/S ratio is 2.12 and the P/B ratio is finally 5.58. The dividend yield amounts to 1.92% and the beta ratio has a value of 0.42.
Take a closer look at the full list of the highest dividend paying processed and packaged goods stocks. The average P/E ratio amounts to 19.99 and forward P/E ratio is 16.43. The dividend yield has a value of 2.38 percent. The P/B ratio is 4.58 and P/S ratio is 1.45. The operating margin amounts to 10.62% and the beta ratio is 0.86. Stocks from the list have an average debt to equity ratio of 6.44 thanks to the high value from Mead Johnson. Excluded by this extraordinary high value, the figure is 1.12.
Related stock ticker symbols:
BGS, GLDC, JVA, CAG, GIS, K, CPB, UN, LNCE, FLO, SJM, MKC, MJN, INGR, HSH, MGPI, JJSF
Selected Articles:
· 19 Consumer Dividend Stocks With Highest Sector Growth
· The Most Recommended Consumer Goods Stocks
· Best Consumer Stock Picks For 2013
· The Best Consumer Goods Stocks To Buy
* If you like to receive more news and regular dividend updates, you should subscribe to my free E-Mail list. Alternative, you can follow me onFacebookor Twitter.
* The highest yielding processed and packaged goods stocks originally published at "long-term-investments.blogspot.com".
