BGS now has a 7% yield so the questions arises, how safe is that
dividend, given the current circumstances?
They have maintained the same dividend for nearly four years, so
that seems to be a plus. Management is/was behind the dividend.
Anyone listen to the conference call?
I don't own the stock but a 7% yield does grab my interest.
However, I'd hate to buy the stock now and then get slammed with
a big dividend reduction in June.
Some comments from Piper Sandler make me feel cautious.
• Updated EPS guidance is $0.15-0.25 below dividend payout.
B&G reported 1Q22
EPS of $0.34, below our $0.40 estimate and consensus of $0.39. Operations were worse
than we expected by $0.04 to EPS, with a $0.03 lift from revenues and a $0.07 headwind
from worse than expected margins. Organic sales growth of 5.4% was better than our
flat estimate. Operating margins fell -350bps vs. our -220bps estimate. Below the line
items were $0.02 worse than we expected, driven by tax rate. The company now expects
net sales of $2.10-2.14B (prior: $2.07-2.125B), adjusted EBITDA of $348-358M (prior:
$358-368M), and adjusted EPS of $1.65-1.75 (prior: $1.70-1.85). Its EPS guidance
compares to its $1.90 dividend payout over the last three years.