B&G Foods Is Down 50% From Its 52-Week High. Time to Buy?
The past year has not been kind to B&G Foods (NYSE: BGS) stock, which is down about 50% from its 52-week high. A dividend cut in late 2022 was a sign of the material headwinds the company faced. The 5% dividend yield is still attractive and the payment much safer, but investors shouldn't think that B&G Foods has solved all of its problems.
At the top level, B&G Foods takes a distinctive business approach. Effectively, it buys unloved brands from larger companies and smaller brands that lack scale and then gives them the attention they need to flourish. The plan is to buy on the cheap and then improve brand results to increase the value of the acquired asset. The company's purchase and subsequent sale of Pirates Booty is a good example.
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Source Fool.com
