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B&G Foods Inc. Message Board

  • tjmcbntmkr tjmcbntmkr Feb 22, 2011 10:21 PM Flag

    24% dividend increase

    and a share and/or debt repurchase announced

    impressive performance

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    • In response to all on this subject thread.

      1. A dividend increase was fully expected. If you listened to the Bloomberg interview that I provided a link to a couple months back the CEO clearly stated that they were looking to return additional capital on top of the already lofty dividend.

      2. The actual increase amount was a bit higher than expected IMO. When one adds both the dividend hike and the $25M share/debt repurchase. This is a pretty positive confirmation of business conditions for them. I suspect a fair portion of this is coming from the SKU rebuild at Walmart that was discussed during the last CC.

      3. The shares didn't move because they had just gotten a hard bump up from being added to the S&P600 index. It is very normal for a hard bounce up on the news of the addition and then some selling off in the following week.

      4. Also, the market was terrible yesterday. While B&G's share price fell yesterday it was a far smaller drop than the average S&P stock. The index ended down over 2% yesterday.

      5. Finally, higher fuel costs, ag input costs, and less disposable income that result from them are simply not good for stocks in general. When they rise it cuts into margins.

      Anyway, so the shares are down a bit. We all want stocks that we own to only move up, but it doesnt' happen.

      If you've decided that your are going to invest in stocks, and you decide to put your money here, most would say they did it for its safety and dividend yeild. If those are your reasons for being in this stock, then news released should only serve to strenghten your resolve to own this company's shares.

      Best of Luck...

    • Which equates to nothing. Overall markets will continue to spiral downwards and take EVERYTHING in there path down with it.

      BGS is no exception. You already see that the dividend increase announcement had no effect as stock is once again trading in the red.

      • 2 Replies to beefstu57
      • All depends on when you bought the stock, and if you think anything will stop the dividends and tank the price then you need to cash out completely of everything, stick a bar of gold up yer ars and hide under yer bed.

      • Tells me that the market already knew this dividend increase was in the bag. I suspected an increase and I know dirt, so the smart money I'm sure knew.

        Also, it would be down A LOT more than if the increase had not been announced. Remember that we've come very far, very fast in this stock. Especially considering the industry - not exactly a high-flying tech stock here.

        I'm pleased with the announcement and bought back a few of the shares I sold higher the other day. The P/E may be in the stratosphere but I'll take the now 6% yield.

42.98+0.03(+0.07%)May 27 4:02 PMEDT