Is Tyson Foods a Top Dividend Stock?
On the surface, meat producer Tyson Foods (NYSE: TSN) looks like a top dividend stock. The most recent quarterly dividend payment of $0.48 per share works out to a dividend yield of about 3.8%, more than double the yield of the S 500. Tyson has also been consistently raising its dividend, more than tripling the dividend payment since 2016.
Most of Tyson's revenue comes from beef, pork, and chicken. These are commodities, and pricing is largely determined by supply and demand. The company also sells prepared foods, which produce consistently higher profit margins.
Demand and prices for meat soared during much of the pandemic's height, and as recently as last year, Tyson was generating solid profits from the core business. Beef in particular was a big money-maker: Beef segment operating margin was 15.9% in the six months ended April 2, 2022, higher than even prepared foods.
Source Fool.com
