- Established in 1961, Ohio-based LANC is a mid-cap specialty food manufacturer with a market value of around $4.95 billion.
- With 58 years of consistent DPS increases, LANC is one of the U.S. dividend kings.
- FY21 revenues rose by almost 10%, but gross profit was up by only 8% as inflation percolated into the cost of sales.
- In FY19-21, LANC's dividend coverage and FCF conversion weakened due to higher capex.
- Valuation is lofty. So, while appreciating the company's tremendously long dividend growth history, I give it a neutral rating.
For further details see:
Lancaster Colony: Excellent Dividend Growth Stock With Nuances