Get 4.2% Per Year with this Low-Risk Stock

This Defensive Food Stock Offers a 4% Dividend and Strong Growth Potential

food stocks

What if you could get 4.2% in dividends year after year with a lower risk investment?  This diversified food company has many leading brands and the ability to survive the ups and downs of the market.

Over the past two months, investor preferences have quickly shifted from high-flying momentum growth stocks to more defensive companies with stable revenues that have strong cash flow and pay dividends.   As this trend continues investors are looking for more places to get attractive returns with lower risk.

One recession proof company is currently paying a 4.2% dividend. It is in a category where people spend money in good times and bad.  Food is something we all need to live.  We won’t stop buying food. We will still head to the supermarket each and every week no matter how hard times get.  We will go there when times are good as well.

Now when you go to the supermarket, do you and your family see and buy any of these brands:

  • Baker’s Joy baking spray
  • B&M Baked Beans
  • Cream of Wheat
  • Emeril’s sauces, soups, or seasonings – Bam!
  • Maple Grove’s Farm of Vermont salad dressings, pancakes, and syrups
  • Mrs. Dash salt free seasonings
  • Ortega Mexican Meals, sauces, and salsas.

If so, you are already familiar with B&G Foods (NYSE: BGS). These are just a few of their brand lines.  B&G Foods specializes in manufacturing, selling and distributing diverse range of food products, including cereals, canned meats, spices, seasonings, salad dressings and other specialty food products. The Company distributes these products through a network of independent brokers to supermarket chains, warehouse clubs and mass merchants in United States, Puerto Rico and Canada.

Check out the chart over the past 12 months:

bgs

The company’s share price was stuck in neutral for a while and it’s finally starting to break out again. They currently pay a $0.34 per share quarterly dividend, which increased 25.9% last year.  The current yield is 4.2%.  This is much better than you can get in a money market and you have the ability to see an increasing dividend as profits rise.  It is a smaller lesser-known company giving it appeal as an “off the beaten path” investment idea with great potential. Unlike a bond that pays a fixed payment for the duration of time you own the bond, a company can increase its dividend year after year, providing some inflation protection.

Looking at the five point stock inspection, B&G Foods is a good value and strong fundamentals:

5-Point Stock Inspection on BGS:

 

Financial Strength:                    Positive

Valuation:                                         Positive – Buy up to $34

Momentum:                                    Neutral

Risk:                                                     Positive  – Low Risk Beta (0.7)

Earnings Trend:                    Positive

12-month price target:           $40

 

Bottom Line: B&G Foods (NYSE: BGS) is a good buy up to $34 per share and offers an attractive 4.2% dividend.  Our 12-month price target is $40 per share.  This would provide a 25% gain if you bought at today’s price and it hits our target. People will continue buying food and companies like B&G Foods should continue to see strong demand even in the toughest of times. 

Today, many investors just like you are searching for a place to find stocks that can turn their nest egg into a HUGE fortune.

Since 2009, the Tomorrow’s Treasures Portfolio (TTP) has produced annualized gains of 28.25%, turning a $10,000 portfolio into $21,300!

Small cap stocks ($250 million to $3 billion) have had an impressive run over the past 87 years. In fact, small cap stocks have produced 12.1% annualized returns compared to 9.9% annually for large-cap stocks (over $10 billion), according to research from Ibbotson Associates.

Now this may seem like just a measly 2.2% each year, but the compound effect over the years is astonishing!

Consider this:

  • $10,000 invested in large cap stocks in 1926, would be worth $30 million today
  • $10,000 invested in small cap stocks in 1926 turns into $160 million today
  • Even more amazing is the small cap value category, $10,000 invested in 1926 becomes $900 million today!

 

Simply put, if you want to build a fortune over the next decade, you must invest in small-cap stocks.
In fact, all ten of the top-performing stocks of the past decade were small cap stocks. Chances are the top-performing stocks over the next decade will also be small cap stocks.

 

So…how can YOU build a fortune with small cap stocks?

Unfortunately, there is no get rich quick formula. But, good old-fashioned discipline, hard work, and a thorough research process can pay HUGE dividends.

That is why the Tomorrow’s Treasures Portfolio (TTP) was created, to help you uncover the very best small-cap stocks in today’s volatile markets.

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