3 Food Processing Dividend Stocks That Could Benefit From Food Shortages Driven By Russia-Ukraine War

Zinger Key Points
  • In the third quarter, Tyson Foods repurchased 8.1 million shares for $693 million.
  • JBS is the number-one global beef producer and poultry producer, as well as the second-largest global pork producer.
3 Food Processing Dividend Stocks That Could Benefit From Food Shortages Driven By Russia-Ukraine War

With global supply chain shortages impacting nearly every sector of the economy in the past two years, will global food shortages worsen? As the U.S. experienced a baby food shortage this summer, firms that made it, such as Abbott Laboratories ABT, could not keep up with the demand due to shortages in supplies and labor constraints.

According to Ukraine’s Ministry for Agriculture, roughly 22 million tons of grain are stranded in the country awaiting export. Ukraine supplies up to 16% of the world’s corn exports and more than 40% of the world’s sunflower oil, per the UN Food and Agriculture Organization. Ukraine’s wheat exports from the start of the marketing year (July 2021 to June 2022) through Jan. 17 were 28% higher year-over-year at 16.3 million metric tons, reported SPGlobal.

Meanwhile, the African Development Bank reported wheat prices in Africa are up by 45% year-over-year.

With Russia making it more difficult for Ukraine to transport its grain, global food inflation could continue to surge and potentially lead to more food shortages.

With this in mind, check out some of the world's largest food packagers and processors offering consistent dividends and fairly high yields.

Also Read: Russia Launches Heavy Missile Attacks On Kyiv After Grain-Deal Fallout: Ukraine Says 'Putin's Only Goal Is Death And Destruction'

B&G Foods Inc BGS is offering a dividend yield of 12.36% or $1.90 per share annually, using quarterly payments, with a track record of increasing its dividends once in the past year.

B&G Foods is an American packaged-food manufacturer with a portfolio of more than 50 brands including Crisco, Green Giant, Weber and Snickers, selling its products in the U.S., Canada and Puerto Rico.

B&G Foods reaffirmed its net sales guidance for full-year fiscal 2022 at a range of $2.10 billion to $2.14 billion and revised its full-year fiscal 2022 adjusted EBITDA guidance to a range of $300 million to $320 million.

JBS SA - ADR JBSAY is offering a dividend yield of 8.30% or 83 cents per share annually, conducting semiannual payments, with a decent track record of increasing its dividends for two consecutive years.

JBS Foods is a Brazilian company involved in beef, lamb and poultry processing and is one of the world's largest exporters of animal protein, selling to more than 150 countries.

JBS is the number-one global beef producer and poultry producer, as well as the second-largest global pork producer.

Tyson Foods, Inc. TSN is offering a dividend yield of 2.71% or $1.84 per share annually, making quarterly payments, with a strong track record of increasing its dividends for 10 consecutive years.

Tyson Foods is the largest U.S. producer of processed chicken and beef and of processed pork and protein-based products under the brands Jimmy Dean, Hillshire Farm, Ball Park, Sara Lee, Aidells, State Fair and Raised & Rooted, to name a few.

In the third quarter, Tyson Foods repurchased 8.1 million shares for $693 million and reported an adjusted operating income of $3.6 billion, up 15% from the prior year.

 

Photo: SeventyFour via Shutterstock

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