Campbell is a better choice post-COVID-19

Article Excerpt

COVID-19 has prompted consumers to stock their pantries as they eat most of their meals at home. We feel this trend will continue as the pandemic eases and keep benefiting both Campbell Soup and General Mills. Still, for new buying we prefer Campbell Soup. The company’s greater exposure to the fast-growing snack-food category positions it to resume dividend increases sooner. CAMPBELL SOUP CO. $53 is a buy. The company (New York symbol CPB; Conservative-Growth Payer Portfolio, Consumer sector; Shares o/s: 302.2 million; Market cap: $16.0 billion; Dividend yield: 2.6%; Dividend Sustainability Rating: Above Average; www.campbellsoupcompany.com) last raised its quarterly dividend by 12.2%, with the October 2016 payment. Investors now receive $0.35 a share; the annual rate of $1.40 yields 2.6%. Campbell completed a strategic review in August 2018. As a result, it has sold most of its international and refrigerated-foods businesses. It is focusing on canned soups, pasta and V8 vegetable juices. Campbell will also keep its snack food operations, which it significantly expanded in March…