B&G Foods Stock Has Paid Out a Dividend Every Quarter Since 2004
Stocks are trading at record territory, meaning it’s
difficult to find undervalued stocks with great near- and long-term growth
potential. At the same time, rock-bottom interest rates mean investors aren’t
making anything off their fixed-income assets.
The Federal Reserve has kept interest rates artificially low
since the Great Recession. It has done so to make borrowing cheap, which is
supposed to juice the economy. It has been great news for businesses, but not
for average American investors who socked money away in the hopes of
supplementing their salaries or pensions with passive income.
Even with a $1.0-million nest egg, you’d take home less in
interest than you would if you worked at a fast-food restaurant.
Because of the coronavirus and ongoing economic challenges,
things are not going to change anytime soon. In fact, Jerome Powell, the
chairman of the Federal Reserve, said he has no plans to raise interest rates
anytime soon. Some on Wall Street don’t expect interest rates to inch up until
at least 2023.
Investors looking for high yields should look at the sectors
that have actually done well during the pandemic. One is consumer staples.
While the coronavirus was first reported in China in
December 2019, it wasn’t until March 2020 that the rest of the world was forced
into partial or full lockdown. That meant most people were, begrudgingly,
following stay-at-home orders, and were only allowed to venture out into the
sunlight for essential items from pharmacies or grocery stores.
That was positive news for recession-proof consumer staple
companies. After all, people still have to eat, color their hair, and clean
their homes. If anything, self-quarantining meant they were doing it more than
ever. People were isolated, spending less money on discretionary items, and
cooking more at home.
One consumer staple company that has done well during the
pandemic is B&G Foods, Inc. (NYSE:BGS). You might not recognize the name,
but chances are good you’ve been acquainted with their products during the
lockdown.
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