Is This 14% Yielding Food Stock Worth the Risk?

B&G Foods (NYSE: BGS) has a huge 14% dividend yield, which might at first sound enticing when you consider that the company operates in the fairly boring packaged food business. But there's a lot more to understand about this unique, high-yield stock before you jump aboard. Here's a quick look at the important facts.

B&G's business approach is interesting. It tends to buy brands from other companies, and then spends some time, energy, and money to revitalize them. Often this means acquiring unloved assets from larger packaged food companies that are in desperate need of attention. For example, the company bought the well-known breakfast brand Cream of Wheat from Kraft (now a part of Kraft Heinz (NASDAQ: KHC)) in 2007. B&G quickly introduced new innovations (like new flavors) that Kraft hadn't bothered trying. It wasn't rocket science, but for much larger Kraft, Cream of Wheat was simply too small to garner management's full attention. At B&G Cream of Wheat was a much bigger deal, and worth putting some money behind.

Image source: Getty Images

Source Fool.com