JM Smucker is a “dividend aristocrat” in the stock market, with a constant increase in dividend payouts for the past 5 years. Deutsche Bank issued its 2016 outlook on the Food Industry naming, J.M. Smucker Co as its top pick based on a combination of increasing profitability, greater operational efficiency (Sanfilippo 2016).
Investment in stocks is a risky, unguaranteed practice and can swing in any direction based on the market and management thereof. When deciding to invest in a food company some might think that the key is to invest in one that generates the highest quality profits and that consists of an empire built to last a lifetime (JM Smucker SWOT Analysis, USP & Competitors 2012). Companies such as Nestle and Unilever have such …show more content…
Although JM Smucker is much smaller than many of the other companies like Coca-Cola, Unilever and Exxon which have valuations in the $250-$500 billion range. The disadvantage of these big companies is how extraordinarily difficult it is to achieve returns higher than 12% with companies that big.
In addition the ability to access a company with diversified divisions which can make excellent standalone businesses (JMS SWOT Analysis, USP & Competitors 2012). JMS has been building an enormous brand that will be the lion of the future.
Although there has been a rise in the cost of ingredients in the last five years in the United States (US). Consumers were reluctant to pay higher prices when General Mills, Kellogg, Nestle, and Kraft tried to pass those costs onto customers. Meanwhile Smucker, has grown revenues 7.5% annually over this time period. According to J.M. Smucker Company Annual reports (2015) the growth has a long-term record of amount to 10.0% each year, and when factor in the 2% dividend yield, therefore an investor is expected to gain long term earning returns of 12% annually with this stock (JM Smucker SWOT Analysis, USP & Competitors
Investment in stocks is a risky, unguaranteed practice and can swing in any direction based on the market and management thereof. When deciding to invest in a food company some might think that the key is to invest in one that generates the highest quality profits and that consists of an empire built to last a lifetime (JM Smucker SWOT Analysis, USP & Competitors 2012). Companies such as Nestle and Unilever have such …show more content…
Although JM Smucker is much smaller than many of the other companies like Coca-Cola, Unilever and Exxon which have valuations in the $250-$500 billion range. The disadvantage of these big companies is how extraordinarily difficult it is to achieve returns higher than 12% with companies that big.
In addition the ability to access a company with diversified divisions which can make excellent standalone businesses (JMS SWOT Analysis, USP & Competitors 2012). JMS has been building an enormous brand that will be the lion of the future.
Although there has been a rise in the cost of ingredients in the last five years in the United States (US). Consumers were reluctant to pay higher prices when General Mills, Kellogg, Nestle, and Kraft tried to pass those costs onto customers. Meanwhile Smucker, has grown revenues 7.5% annually over this time period. According to J.M. Smucker Company Annual reports (2015) the growth has a long-term record of amount to 10.0% each year, and when factor in the 2% dividend yield, therefore an investor is expected to gain long term earning returns of 12% annually with this stock (JM Smucker SWOT Analysis, USP & Competitors