BGS - These 2 Dividend Payers Are Outpacing the S&P 500
2023-07-06 05:05:00 ET
When investors look for stocks that outperform, they'll often compare investments to the S&P 500 index. That broad market barometer is a fine yardstick, but just outpacing the market may not be enough information to see what's really going on.
One example is Costco Wholesale (NASDAQ: COST) which is beating the S&P 500 year to date in 2023 as it continues to execute well on a differentiated and long-successful business model. B&G Foods (NYSE: BGS) is also beating the S&P 500 at the moment, but it is rebounding from a deep decline that was precipitated by some troubling developments. Those developments are still impacting the company's business.
B&G Foods is a food maker with a stable of well-known brands, including Cream of Wheat, Crisco, Green Giant, Durkee, and several others. From a brand perspective, it manages itself fairly well. It usually buys brands that are smaller and growing or ones that are large but have been neglected. It tends to buy them from a dominant food maker that has lots of successful brands. In both cases, B&G lavishes some love on the new brands (increasing advertising, distribution, and product development) to boost growth.
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These 2 Dividend Payers Are Outpacing the S&P 500