Takeovers spark new interest in these five

Article Excerpt

Two of our food stocks— Heinz and D.E. Master Blenders (see box this page)— have recently attracted takeover offers. These companies drew buyers for the same reasons we recommended them: their steady earnings and top brands. We also like the outlook for the five food makers below, particularly ConAgra, our top pick for 2013. These five have yet to draw big takeover offers, but the bids for Heinz and D.E. Master do highlight the value of their popular brands. All five also bring an attractive combination of value and steady income. Even so, not all are buys right now. CONAGRA FOODS INC. $35 (New York symbol CAG; Income Portfolio, Consumer sector; Shares outstanding: 416.8 million; Market cap: $14.6 billion; Price-to-sales ratio: 1.1; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www. conagrafoods.com) makes a variety of packaged foods, including Chef Boyardee canned pasta, Hunt’s tomato sauce, Peter Pan peanut butter, Orville Redenbacher popcorn and Reddiwip whipped cream. The company recently completed…