ORRVILLE, Ohio - The J.M. Smucker Co. (NYSE: SJM), known for its array of food and pet brands, has declared a dividend of $1.08 per common share. This dividend is scheduled to be paid on December 2, 2024, to shareholders who are on record as of November 15, 2024.
The company, which owns popular brands such as Folgers, Jif, and Milk-Bone, has emphasized its commitment to quality products and ethical business practices. The J.M. Smucker Co. also licenses the Dunkin' brand for packaged coffee products sold in various retail channels, although this does not include products sold in Dunkin' restaurants.
This dividend announcement follows the company's ongoing efforts to deliver shareholder value and reflects its stable financial position. The J.M. Smucker Co. has a diverse portfolio that spans across numerous categories, including coffee, peanut butter, fruit spreads, and pet foods, with brands that hold leading positions in their respective segments.
Investors may view this dividend declaration as a continuation of The J.M. Smucker Co.'s strategy to provide consistent returns to its shareholders. The company's performance in the market and its ability to maintain a dividend payout amidst a competitive landscape is indicative of its operational strength.
The information provided is based on a press release statement from The J.M. Smucker Co. and reflects the company's latest financial actions as it seeks to balance growth with shareholder returns.
In other recent news, J.M. Smucker Co. has agreed to sell its Voortman cookie brand to Second Name Brands for a cash deal of $305 million. This transaction, which includes all Voortman trademarks and a leased manufacturing facility in Ontario, Canada, is part of Smucker's strategic shift to focus on its core brands. The company expects that the sale will reduce its adjusted earnings per share by approximately 25 cents on a full-year basis, but contribute about 10 cents to the company's full-year earnings per share once completed.
Smucker's recent first-quarter earnings for the fiscal year 2025 significantly surpassed estimates, but the company has revised down its sales and earnings per share guidance for the fiscal year. Analyst firms TD Cowen and Citi have adjusted their outlooks on J.M. Smucker, reducing the price target but maintaining a Buy rating on the company's shares.
J.M. Smucker Co. is also dealing with rising green coffee costs, which have led to a reduction in earnings per share and a $40 million reduction in full-year expectations for the Hostess brand due to derisking efforts. Despite these challenges, both TD Cowen and Citi see potential for J.M. Smucker to achieve above-average earnings growth over time. These are the recent developments for the company.
InvestingPro Insights
The J.M. Smucker Co.'s recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a current dividend yield of 3.67%, which is attractive in the current market environment. This yield is supported by SJM's impressive dividend history, as highlighted by an InvestingPro Tip: the company has maintained dividend payments for 54 consecutive years and has raised its dividend for 14 consecutive years.
The company's commitment to shareholder value is further underscored by its financial performance. With a market capitalization of $12.48 billion and a P/E ratio of 16.57, SJM appears to be reasonably valued relative to its earnings. The company's profitability is also noteworthy, with an InvestingPro Tip indicating that SJM has been profitable over the last twelve months.
However, investors should be aware that 13 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip. This could suggest some near-term challenges that the company may face.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights that could provide a more comprehensive view of SJM's financial health and future prospects.
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