Daily Stock Analysis: B&G Foods (BGS)

B&G Foods Inc has the ticker symbol BGS and is a small cap ($1.9B) member of the consumer defensive sector. This is my first look at B&G Foods for this Vista folio but it has been selected for one or more of my previous portfolios.

B&G Foods Inc. (BGS) is an American packaged-food manufacturer. It was founded in 1822 and is headquartered in Parsippany, New Jersey. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. 

The company sells its products in United States, Canada, and Puerto Rico. The company's main brands are: Ac'cent, B&G, B&M, Baker's Joy, Bear Creek Country Kitchens, Cary's, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Durkee, Emeril's, Grandma's Molasses, MacDonald's, Mama Mary's, Maple Grove Farms, Regina, Sa-son, Sclafani, Smart Puffs, Spice Islands, Spring Tree, and Wright's. 

The company distributes its products through multiple channels to supermarkets, wholesalers, mass merchants, warehouse clubs, and foodservices.

Three key data points gauge dividend equities or funds like B&G Foods Inc (BGS):

(1) Price (2) Dividends (3) Returns. Those three basic keys best tell whether any company has made, is making, and will make money. 

BGS Price

B&G Food's price per share closed at $29.31 Friday. One year ago its price was $22.27.  Thus, price per share has grown about 31.6% while it recovered from last-year's Covid market slump. 

Should B&G Food's stock trade in the range of $24 to $36.00 this next year, its recent $29.31 price might rise by $1.69 to reach $31.00 by May 23, 2022. My estimate is nearly $3 higher than the median of eight price estimates from analysts tracking BGS 

BGS Dividends

B&G Food's most recent quarterly dividend of $0.475 was declared May 20th, payable July 30th and equates to $1.90 annually which will yield 6.48% based on Friday's $18.65 closing price.  B&G Foods has paid quarterly dividends increasing annually since January 2009 (12 years.)

BGS Returns

Adding the $1.90 annual B&G Foods forward looking dividend to my $1.69 price upside estimate shows a $3.59 potential gross gain, per share, to be reduced by any costs to trade the shares.  

BGS at $29.31 per share, we'd buy 34 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.29 per share.

Subtract that maybe $0.29 brokerage cost from my estimated $3.59 gross gain per share results in a net gain of $3.30 X 34 shares = $112.20 for a 11.2% net gain on a $996.54 investment.

So it is that B&G Foods Inc shows a possible 11.4% net gain including a 6.48% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in BGS could generate $64.80 in cash dividends. And a single share bought at yesterday's closing price was $29.31! So, if BGS is your kind of packaged foods investment, B&G Foods share price is less than half the expected annual dividend income from $1,000 invested. This suggests now is a good time to add this company to your stock holdings. 

All of the estimates above are speculation based on the past history of  B&G Foods Inc (BGS). Only time and money invested in this stock will determine its worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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