Is B&G Foods Stock a Long-Term Buy?
Most investors looking at B&G Foods (NYSE: BGS) are likely doing so because of the stock's 13% dividend yield. To put that yield into perspective, the S&P 500 index (SNPINDEX: ^GSPC) yields around 1.1%, and the average consumer staples company yields 2.1%. Before you leap on the opportunity to add an ultra-high-yield stock to your portfolio, you need to understand the risks involved.
B&G Foods cut its dividend 60% in 2022 and hasn't increased it since the cut. When the company announced the dividend cut, it explained that the reduction was needed so that management could focus on strengthening the company's balance sheet.
Image source: Getty Images.
Source Fool.com
