On Jan. 10, food company Maple Leaf Foods (TSX:MFI) announced that it was boosting its dividend payment by two cents, from $0.22 to $0.24. It amounts to a 9% increase which will pay investors $0.96 per share over the course of a full year. With the stock trading at around $21, that puts its yield at approximately 4.6%. By comparison, the average stock on the S&P 500 yields around just 1.3%.
For dividend investors, Maple Leaf Foods can be an attractive income-generating investment option. To collect $1,000 in dividends from the stock over a full year, you would need to invest just under $22,000 into the business.
Another reason investors might love it is that it also averages a low beta of 0.44, which means that the stock is less volatile than the overall market. This can make it an ideal option to buy and hold over the long term and not worry too much about market conditions.
That being said, there can still be some volatility. Last year was a tough one for Maple Leaf Foods stock, however, as its shares fell by 19% amid inflation and worsening economic conditions. But over the past decade, the stock’s total returns (including dividends) are a positive 31%.
While Maple Leaf Foods might not generate significant gains for your portfolio, this can be a potentially good income investment if you just want some solid dividend income. And after coming off a tough year in 2024, its low valuation (it trades at a forward price-to-earnings multiple of 14) could make it an underrated buy this year, potentially setting it up for some gains in the months ahead.
