ORRVILLE, Ohio - The J.M. Smucker Co. (NYSE: SJM), known for its diverse portfolio of food and pet brands, has declared a modest increase in its quarterly dividend. Shareholders can expect a dividend of $1.08 per common share, a 2% hike from the previous $1.06. This increment is set to be distributed on September 3, 2024, to shareholders on record as of August 16, 2024.
This announcement marks the company's 23rd consecutive year of dividend growth, reflecting its ongoing commitment to delivering shareholder value. The J.M. Smucker Co. has a history of consistent dividend payments, and this increase is a continuation of that trend.
The press release also includes a forward-looking statement regarding future dividends, which is based on the company's current views and assumptions. The company notes that this is not a guarantee of future performance and that actual results may differ. It also advises investors to refer to its filings with the Securities and Exchange Commission for more details on risk factors that could affect future dividend payments.
The J.M. Smucker Co. hosts a robust brand portfolio that includes names like Folgers, Dunkin', Jif, and Milk-Bone, catering to both human and pet consumers. In its operations, the company emphasizes quality production, responsible and ethical practices, and a positive societal impact.
As with any forward-looking statements, there are inherent risks and uncertainties, and the company does not undertake any obligation to update its dividend statement unless required by law. Shareholders and potential investors are encouraged to consult the company's SEC filings for a more comprehensive understanding of the risks involved.
This dividend increase is based on a press release statement from The J.M. Smucker Co. and reflects the company's performance and strategic decisions as of the date of the announcement.
In other recent news, J.M. Smucker Co. has experienced several noteworthy developments. The company reported an 8% increase in full-year net sales and an adjusted earnings per share (EPS) of $9.94 for Fiscal 2024, largely due to the acquisition of Hostess Brands (NASDAQ:TWNK). This acquisition has been instrumental in the company's growth, particularly in the coffee, snacking, and pet food categories.
Several investment firms have revised their outlook on J.M. Smucker. Argus maintained a Buy rating but lowered the stock's price target to $135 from $150. DA Davidson also lowered its price target on J.M. Smucker shares to $126 from $132 while maintaining its Neutral rating. TD Cowen, on the other hand, reduced its price target to $135 from the previous $140, but sustained a Buy rating.
Despite a 1% decline in net sales in the fourth quarter, the company anticipates a net sales growth of 2% and an adjusted EPS of $10.00 for Fiscal 2025. However, potential challenges posed by higher commodity costs and expenses for a new Uncrustables facility are expected to impact margins. Despite these potential obstacles, J.M. Smucker maintains a positive outlook, planning to prioritize debt reduction while expecting adjusted EPS growth in Fiscal 2026.
InvestingPro Insights
The J.M. Smucker Co. (NYSE: SJM) has demonstrated a strong commitment to shareholder returns, not only through its recent dividend increase but also as evidenced by its long-term financial practices. According to an InvestingPro Tip, the company has raised its dividend for 14 consecutive years, showcasing its dedication to providing consistent shareholder value. Furthermore, the company has maintained dividend payments for an impressive 54 consecutive years, underscoring its financial stability and reliability as an income-generating investment.
InvestingPro Data highlights that the J.M. Smucker Co. currently holds a market capitalization of $12.05 billion and a P/E ratio of 15.92, which adjusts to 13.56 when considering the last twelve months as of Q4 2024. This suggests a reasonable valuation relative to earnings. Additionally, the dividend yield as of the same period stands at 3.82%, making it an attractive option for income-focused investors.
While the company's revenue has seen a slight decline of 4.11% over the last twelve months as of Q4 2024, the InvestingPro Tips indicate that analysts predict the company will remain profitable this year, having been profitable over the last twelve months. This profitability, coupled with the company's proactive share buyback strategy, could signal a positive outlook for the stock's future performance.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available, which can be accessed through the dedicated InvestingPro page for The J.M. Smucker Co. (https://www.investing.com/pro/SJM). These tips offer further insights into the company's financial health and future prospects. Moreover, readers can take advantage of a special offer by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to exclusive investment tools and data to inform their investment decisions.
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