Three Food Stocks to Consider in May

May 7, 2020
279 Views

The food supply chain has come to the forefront of public consciousness in recent weeks. With hundreds of millions of people around the world on lockdown orders, food supplies have become incredibly important.

Food companies that can meet demand and that offer unique products are highly competitive in today’s market. Here are three of the best stocks to consider in May.

SunOpta Inc. (NASDAQ: STKL)

SunOpta is a natural food company that specializes in organic and non-GM products. It sells ingredients, beverages, prepared foods, and frozen foods. The organic food movement is thriving in North America, where consumers want access to unprocessed foods that are ethical and sourced from sustainable farms.

This company also engages in the bio-fuel industry, making it a diversified pick for investors who are interested in alternative energy. With proprietary technologies and production processes, SunOpta has a strong competitive advantage.

While this bargain stock is yet to produce a dividend, the average target price of $4.00 hints at a reasonable upside.

B&G Foods Inc. (NYSE: BGS)

This is a stock pick that has a lot of momentum and a great dividend. B&G Foods is engaged in the production, distribution, and sale of shelf-stable foods. It offers products like frozen vegetables, canned vegetables, canned meats, spices, seasonings, and cereals.

The stock price has increased by 17.12% in the year so far, and it could break well beyond analyst targets. There has been a high demand for shelf-stable foods since the Coronavirus Pandemic emerged earlier this year.

Most compelling in this stock is the 9.05% dividend yield, which is significantly higher than the market average.

The J.M. Smucker Company (NYSE: SJM)

The J.M. Smucker Company owns many of North America’s favorite household brands, including Jif, Smuckers, Folgers, and Dunkin’ Donuts. Its most popular products include coffee, peanut butter and fruit spreads, baking products, and pet food products.

There’s not a lot of momentum in this stock today, but the price is still reasonable. What makes this stock truly attractive is its resilience during the Coronavirus Pandemic and the above market average dividend yield of 3.08%. It’s a strong pick for income investors in 2020.

Food stocks could be the ideal portfolio additions during today’s unique economic climate.

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