Feasting On Food Dividends: Payout Increases From A Delectable Sector
Another Dividend Increase From The Food Sector
About: (BOBE, Bob Evans Farms, SYY, Sysco, CPB, Campbell Soup)
This week has been a veritable buffet of dividend increases from the food sector and that’s good news for income investors. We’ve already highlighted dividend hikes from Sysco (NYSE: SYY) and Campbell Soup (NYSE: CPB). On Thursday, restaurant operator and pork distributor Bob Evans Farms (Nasdaq: BOBE) boosted its quarterly dividend by 12.5% to 18 cents a share. The new dividend is payable on December 15 to shareholders of record on December 4. Bob Evans shares currently yield 2.4%.
Showing that its balance sheet is in fine shape, Bob Evans Farms also said it will purchase 1 million of its own shares under a buyback program that will last until April 30, 2010. The company also announced it has reduced its debt load by $66 million this year. Last week, the company said fiscal second-quarter profits rose by 37%, helped by lower interest payments and tax rates.
Bob Evans has boosted its dividend in seven of the past 11 years. The five-year dividend growth rate is 5.58%. The company operates 569 Bob Evans restaurants in 18 states and 145 Mimi’s Cafe restaurants in 24 states.
