The Campbell's Company (NASDAQ:CPB), a branded packaged foods provider, closed at $22.13, down 6.96%. Thursday's sell-off followed weaker fiscal fourth-quarter profitability, a sales miss, and a dividend reduction.
Trading volume reached 37.4 million shares, coming in about 343% above its three-month average of 8.4 million shares.
The S&P 500 (SNPINDEX:^GSPC) rose 1.07% to 7,748, and the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.40% to 26,584. Among packaged-food rivals, Kraft Heinz (NASDAQ:KHC) closed at $25.42, down 3.20%, while General Mills (NYSE:GIS) ended at $39.26, down 3.25%, underscoring pressure across packaged foods and meats, as well as branded shelf-stable foods and beverages.
Income investors already owning the stock will be disappointed with what they heard from Campbell's today. A 36% dividend cut was announced as part of a plan for the food company to shore up its balance sheet amid inflationary pressures and dropping sales. The company is also implementing a new $500 million cost-savings plan through 2030.
The new $0.25 quarterly dividend still provides a relatively high annual yield of 4.5%, making shares a potential buy for those seeking income. That doesn't help existing shareholders, though, who now face a lower dividend payment on top of a 20% year-to-date decline in the shares.
If the company's turnaround plan is successful, though, new money in the stock with many popular brands could prove to beat the market over the long term.
#shares #million #plan #income
Trading volume reached 37.4 million shares, coming in about 343% above its three-month average of 8.4 million shares.
The S&P 500 (SNPINDEX:^GSPC) rose 1.07% to 7,748, and the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.40% to 26,584. Among packaged-food rivals, Kraft Heinz (NASDAQ:KHC) closed at $25.42, down 3.20%, while General Mills (NYSE:GIS) ended at $39.26, down 3.25%, underscoring pressure across packaged foods and meats, as well as branded shelf-stable foods and beverages.
Income investors already owning the stock will be disappointed with what they heard from Campbell's today. A 36% dividend cut was announced as part of a plan for the food company to shore up its balance sheet amid inflationary pressures and dropping sales. The company is also implementing a new $500 million cost-savings plan through 2030.
The new $0.25 quarterly dividend still provides a relatively high annual yield of 4.5%, making shares a potential buy for those seeking income. That doesn't help existing shareholders, though, who now face a lower dividend payment on top of a 20% year-to-date decline in the shares.
If the company's turnaround plan is successful, though, new money in the stock with many popular brands could prove to beat the market over the long term.
#shares #million #plan #income
7 days ago
