Inflation surges to a decade high: 3 dividend paying food stocks you can buy

Highlights

  • Kerry Group completed the takeover of Niacet Corp. for €853 million ($1,015 million) on 14 September 2021. 
  • Tate & Lyle’s board declared a total dividend of 30.8 pence per share for the year ended 31 March 2021.
  • Cranswick’s revenues and volume sales rose by 9.6% and 7.7% year-on-year, respectively for Q1 ended 26 June 2021.

UK inflation rose to a decade high figure of 3.2% in August 2021 compared to 2% in the previous month according to a report by the Office for National Statistics (ONS). The agency, however, expects the rise in prices to be a temporary phenomenon.

The UK’s consumer prices index increased 0.7% between July and August 2021 compared to a 0.4% decline in August 2020, primarily driven by increasing prices of food & drinks, restaurants, transport, and hotels. In August 2020, prices of food and beverages across cafes and restaurants were discounted due to the government’s temporary scheme “Eat Out to Help Out”, which was not implemented this year.

3 Dividend paying 3 food stocks – Kerry, Tate, & Lyle & Cranswick

(Data source: Company Release)

Here we take a detailed look at three food stocks that have offered regular dividends to shareholders.

Kerry Group Plc (LON: KYGA)

Kerry Group is a provider of flavoured and nutritional ingredients for food and beverage companies. Kerry Group completed the takeover of Niacet Corp. for €853 million ($1,015 million) on 14 September 2021. Post-acquisition, Niacet will be integrated as a part of the global food protection and preservation platform of Kerry.

Kerry Group’s shares are trading at EUR 123.15, down by 2.46% at 10:16 AM BST on Wednesday 15 September 2021. The market cap of the company stands at £18,932.45 million.

For H1 2021 ended 30 June 2021, Kerry Group recorded revenue of €3.6 billion, an increase of 9.0% in volume. The group’s free cash flow stood at €222 million as of H1 2021 compared to €107 million in H1 2020. It announced an interim dividend of US 28.5 cents per share to shareholders.

Tate & Lyle Plc (LON: TATE)

Tate & Lyle is a UK-based, global specialty ingredient supplier to the food and beverage industry. Recently, the company’s two corn wet mills in the US were awarded the US Environmental Protection Agency's (EPA's) Energy Star certification.

Tate & Lyle’s shares are trading at GBX 693.80, down slightly by 0.12% at 10:29 AM BST on Wednesday 15 September 2021. The market cap of the company stands at £3,254.15 million.

Tate & Lyle recorded revenue of £2,807 million for the financial year ended 2021 compared to £2,882 million in the previous year. Its pre-tax profit reached £283 million in FY 2021 compared to £296 million in FY 2020.

Tate & Lyle’s board recommended a 5.8% increase in the final dividend to 22.0 pence per share, bringing the total dividend to 30.8 pence per share for the year ended 31 March 2021.

Cranswick Plc (LON: CWK)

Cranswick is a UK-based producer and supplier of premium and value-added food products. Cranswick’s shares are trading at GBX 3,794.00, down slightly by 0.63% at 10:47 AM BST on Wednesday 15 September 2021. The market cap of the company stands at £2,022.46 million.

For Q1 ended 26 June 2021, Cranswick’s revenues and volume sales rose by 9.6% and 7.7% year-on-year.

Cranswick’s board declared a final dividend payout of 51.3 pence per share for shareholders for the year ended 27 March 2021.

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