Dividend hike ahead of spinoff

Article Excerpt

MAPLE LEAF FOODS INC. $21 is a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.4 million; Market cap: $2.6 billion; Price-to-sales ratio: 0.6; Dividend yield: 4.6%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels. It also makes plant-based hamburgers, hot dogs and other protein products under the Lightlife and Field Roast brands. Maple Leaf will now raise your quarterly dividend by 9.1%. Starting with the March 2024 payment, investors will receive $0.24 a share instead of $0.22. The new annual rate of $0.96 yields a high 4.6%. However, the company plans to eliminate the 2% discount it offers investors who prefer to receive their dividend payments in the form of additional shares instead of cash. The company still plans to spin off its pork processing business, which raises and processes hogs, as a separate firm called Canada Packers Inc. The aim is to complete the transaction in the second half of…