Bargain Hunting? This Dividend Stock Has a Lot to Prove Before It Is a Buy Again.
Calavo Growers (NASDAQ: CVGW) paid an annual dividend for many years, and it was increased regularly, building a fairly impressive dividend record. Then, in late 2022, the dividend policy changed slightly. And it was changed again in early 2023 in a decidedly negative way.
The shares are down roughly 75% from peak levels in 2018, which might interest bargain hunters looking for cheap stocks. Except that the dividend changes need to be considered before income investors buy in. Yes, Calavo Growers' stock is interesting, but it now has a lot to prove on the dividend front.
A little over half of Calavo's top line comes from its "grown" segment, which is mostly driven by avocados. The company also sells tomatoes and papayas. The rest of the top line is tied to its prepared foods division, which processes and packages cut fruits, vegetables, and meat. This group also makes guacamole.
Source Fool.com
