In this article, we will take a look at some of the best food stocks with dividends.
Top food companies tend to have strong brand recognition that allows them to charge premium prices, along with large-scale operations that help keep expenses down. These advantages— pricing power and cost efficiency— are especially valuable now, as inflation pressures consumer budgets and supply chain costs continue to rise.
In response to shifting consumer preferences and the “Make America Healthy Again” initiative led by Health Secretary Robert F. Kennedy Jr., many US packaged food companies have announced plans to remove FD&C synthetic dyes from their products. This move also aligns with statements made in April by Kennedy and FDA Commissioner Marty Makary, who signaled the agency’s intent to phase out artificial food colors due to growing concerns over their possible links to health issues like ADHD, obesity, and diabetes.
Alongside this development, dividends from food companies have also caught the eye of investors. According to analysts, for those considering investments in food stocks, dividend performance is worth watching closely. Savita Subramanian, equity and quant strategist at Bank of America, noted that if the market is shifting toward a “total return world,” dividends will play a more significant role in overall portfolio returns, especially as large stock price gains may become less common. In her research note, she recommended focusing on companies offering dividend yields that are not only above the market average but also sustainable.
Given this, we will take a look at some of the best food stocks with dividends.
A B2B food distributor making sure grocery shelves are fully stocked with food.
Our Methodology
For this list, we scanned Insider Monkey’s database of Q1 2025 and picked dividend companies belonging to different segments within the food industry, such as food manufacturers, food processors, beverage companies, and restaurants. We analyze these companies through their financial health and dividend policies. The stocks are ranked in ascending order of the number of hedge funds having stakes in them, as of the first quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Flowers Foods, Inc. (NYSE:FLO)
Number of Hedge Fund Holders: 31
Flowers Foods, Inc. (NYSE:FLO) is an American company that manufactures a range of bakery products for both retail and foodservice markets nationwide. Its offerings include items like fresh bread, buns, rolls, snack cakes, and tortillas. The company supplies these products to grocery stores, convenience outlets, and restaurants. Among its most recognized brands are Nature’s Own, Whitewheat, Cobblestone Bread, Wonder, Dave’s Killer Bread, Canyon Bakehouse, Mrs. Freshley’s, and Tastykake.
Flowers Foods, Inc. (NYSE:FLO) has a strong cash position. In the most recent quarter, the company generated $135.6 million in operating cash flow, which grew by $30.5 million. The company also remained committed to its shareholder obligation, returning $52.3 million through dividends during the quarter, up $1.2 million from the previous quarter.
Flowers Foods, Inc. (NYSE:FLO) currently offers a quarterly dividend of $0.2475 per share, having raised it by 3.1% in May. This was the company’s 23rd consecutive year of dividend growth, which makes it one of the best food stocks with dividends. In addition, it has paid regular dividends to shareholders for 91 quarters in a row. The stock has a dividend yield of 6.09%, as of July 27.
9. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 37
Hormel Foods Corporation (NYSE:HRL) is among the best food stocks with dividends. The company is facing several challenges, including rising costs, avian flu, a slow recovery in China, and early issues with its Planters acquisition. While none of these are likely to harm the business long-term, their combined effect is significant. To address this, Hormel is focusing on product innovation, improving efficiency, and revamping its leadership. Backed by The Hormel Foundation, which supports the company’s long-term success, the new management team is well-positioned to guide it through these headwinds.
Hormel Foods Corporation (NYSE:HRL) reported strong earnings in fiscal Q2 2025. The company’s revenue came in at $2.9 billion, which showed a 0.4% growth on a YoY basis. It reported operating income of $248 million, with adjusted operating income reaching $265 million. Management expressed optimism for strong growth in the second half of the year, driven by a portfolio centered on consumer-focused, protein-rich products. They highlighted expected gains from the turkey segment, continued progress with the Planters brand, strength in key market-leading categories, and ongoing advantages stemming from the Transform and Modernize (T&M) initiative.
Hormel Foods Corporation (NYSE:HRL) ended the quarter with nearly $670 million in cash and cash equivalents. The company generated an operating cash flow of $56 million. It currently offers a quarterly dividend of $0.29 per share and has a dividend yield of 3.97%. HRL is a Dividend King with 59 consecutive years of dividend growth under its belt.
