Investors are favoring food stocks such as Campbell Soup (NYSE: CPB), Kellogg (NYSE: K), The Original Soupman (OTC: SOUP), Kraft (NASDAQ: KRFT), and others for both positive and negative reasons in the short term.
The positive factors come from the recent favorable press from the FMI “Global Food Retail Experience” in Chicago.
That focused favorable press on the industry. Companies that were there such as Kraft, The Original SoupMan, Campbell, and others showed off their best to the media. Attention like that is bullish for a stock price. As a result, Campbell Soup is up for the last week and month of market action (chart below).
The negative factors are from the tension in Iraq and the Ukraine.
From that, investors will flee to defensive holdings. Food stocks are always at the top of that list. No matter what, people must eat. That has also led to to the strong performance by Kraft, Kellogg, and others. It also leads to the robust growth prospects for ones like The Original SoupMan, as many others have hit stagnant periods. Massive food companies like Campbell and Kellogg do not have the alluring growth potential of a company like The Original SoupMan.
The strong dividend income from food stocks increase their appeal, no matter what the short term or long term market conditions.
Kraft, Campbell, Kellogg, and many others have very strong dividend incomes. All have a secure dividend history. No matter what happens around the world, shareholders can always look forward to a dividend check in the mail every quarter. That obviously makes a stock more alluring in times of trouble. In addition, all have a history of increasing the dividend amount to reward long term shareholders.
That makes a stock appealing no matter what the market conditions!