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.
8. The J. M. Smucker Company (NYSE:SJM)
Number of Hedge Fund Holders: 37
The J. M. Smucker Company (NYSE:SJM) is recognized as a strong value in the food sector, with several successful brands under its belt. Notable performers include pet food lines like Meow Mix and Milk-Bone, as well as the well-liked Uncrustables sandwich products. The company paid a premium when it acquired Hostess Brands in November 2023. To refocus its efforts, the company recently sold off some brands from its Sweet Baked Snack segment, including Voortman, to concentrate more on the Hostess portfolio.
Although the transition has been challenging, The J. M. Smucker Company (NYSE:SJM) appears to be moving in the right direction. It anticipates full-year fiscal 2026 sales to grow by 2% to 4%, despite the effects of divesting certain Sweet Baked Snack value brands. The company is also expected to deliver strong earnings and free cash flow.
In fiscal Q4 2025, The J. M. Smucker Company (NYSE:SJM) reported operating cash flow of $393.9 million, and its free cash flow was $298.9 million. During the quarter, the company returned $114.5 million to shareholders through dividends, reinforcing its commitment to investor return. This cash position enables the company to consistently raise its dividends.
The J. M. Smucker Company (NYSE:SJM) declared a 1.9% hike in its quarterly dividend on July 16. This marked the company’s 24th consecutive year of dividend growth, which makes it one of the best food stocks with dividends. The company now offers a quarterly dividend of $1.10 per share and has a dividend yield of 4.04%, as of July 27.
7. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Hedge Fund Holders: 39
Archer-Daniels-Midland Company (NYSE:ADM) is a major global player in agriculture, specializing in processing and trading various products such as food ingredients, animal feed, and biofuels. The company handles a broad range of crops, including soybeans, corn, and wheat, and is also known for its innovation, having developed or helped create products like textured vegetable protein, high-fructose corn syrup, ethanol, and Omega-3 fatty acids.
Archer-Daniels-Midland Company (NYSE:ADM) posted mixed results for the first quarter of 2025. Its revenue totaled $20.1 billion, representing a 7.7% decline compared to the same period last year and falling short of analysts’ expectations by $1.9 billion.
Despite this, ADM maintained a strong cash position, closing the quarter with $864 million in cash and cash equivalents. The company generated $439 million in operating cash flow before working capital adjustments. Notably, Archer-Daniels-Midland Company (NYSE:ADM) is a Dividend King, having increased its dividend for 52 consecutive years and paid uninterrupted dividends for 90 years.
Archer-Daniels-Midland Company (NYSE:ADM) currently offers a quarterly dividend of $0.51 per share and has a dividend yield of 3.69%, as recorded on July 27.
6. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 40
The Hershey Company (NYSE:HSY) is a well-known consumer staples company primarily recognized for its confections and snacks. While the company has broadened its product range to include items like popcorn and pretzels, chocolate remains one of its core offerings. Seen as an affordable indulgence, Hershey’s chocolate continues to be highly popular, driving steadily increasing sales over time.
The Hershey Company (NYSE:HSY) recently revealed it will increase prices for the second time in just over a year, attributing the hike to ongoing high cocoa costs that will lead to a double-digit rise in candy prices. While cocoa prices have dropped from their record high of $12,000 per metric ton, they still trade above $8,000 per metric ton. Many analysts expect these elevated prices to persist in the near term, largely due to last year’s adverse weather conditions in Western Africa.
The Hershey Company (NYSE:HSY) is also a strong dividend payer, having raised its payouts for 15 consecutive years. The company offers a quarterly dividend of $1.37 per share and has a dividend yield of 2.93%, as of July 27.
5. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 43
General Mills, Inc. (NYSE:GIS) is among the best food stocks with dividends. The company’s top priority for fiscal 2026 is to revive organic sales growth driven by volume. To achieve this, it plans to increase investments in consumer value, product innovation, brand building, and new offerings— all guided by its established experience framework. A key highlight includes the national rollout of Blue Buffalo’s fresh pet food line, expected in late 2025. In addition, the company aims to deliver strong cost savings through its Holistic Margin Management program and enhance efficiency through a global transformation initiative, freeing up more resources to support growth.
General Mills, Inc. (NYSE:GIS) reported mixed earnings in fiscal Q4 2025, with revenues of $4.56 billion, down 3.3% from the same period last year. However, the company’s cash position remained strong. The company generated $2.9 billion in operating cash flow, which amounted to 126% of after-tax earnings, while free cash flow represented 97% of adjusted after-tax earnings. Dividend payments declined by 2% to $1.3 billion, primarily due to a reduced average number of shares outstanding.
On June 25, General Mills, Inc. (NYSE:GIS) declared a 1.7% hike in its quarterly dividend to $0.61 per share. This was the company’s fourth consecutive year of dividend growth. In addition, it has paid regular dividends to shareholders for 126 years in a row. The stock has a dividend yield of 4.78%, as of July 27.
4. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 46
As reported by The Wall Street Journal, The Kraft Heinz Company (NASDAQ:KHC) is considering spinning off a significant portion of its operations, potentially valued at around $20 billion. With the company’s total market capitalization currently near $34 billion, the move would represent a major restructuring. While specifics haven’t been confirmed, reports suggest the split may involve creating one division centered on spreads and sauces, while the other would include processed meats, cheeses, and other essential products.
The Kraft Heinz Company (NASDAQ:KHC) reported revenue of $6 billion in the first quarter of 2025, down 6% from the same period last year. The company was once known for steady dividend growth, but after its 2015 merger with Heinz, the company eventually cut its dividend due to underperforming acquisitions. Since early 2019, the dividend has remained at $0.40 per share. However, rising cash flows— growing from $2.46 billion in 2022 to $4.1 billion in 2024— have improved the dividend outlook. In Q1 2025, the company returned $477 million to shareholders through dividends.
The Kraft Heinz Company (NASDAQ:KHC) currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 5.58%, as of July 27.
3. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 52
Mondelez International, Inc. (NASDAQ:MDLZ), a major name in the snack food industry, is well known for owning popular chocolate brands like Oreo, Cadbury, Chips Ahoy!, Milka, and others. As of 2025, it held the second-largest share in the global chocolate market at 12.3%.
Mondelez International, Inc. (NASDAQ:MDLZ) has also been growing its footprint in the health food space, responding to the increasing global focus on healthier eating. The company reported strong earnings in the first quarter of 2025. Its revenue was $9.3 billion, which showed a 1% growth from the same period last year.
Mondelez International, Inc. (NASDAQ:MDLZ) offers a dividend as well, which it has steadily increased since becoming an independent company. The company’s cash position is also strong, as it generated $1.1 billion in cash from operating activities and reported free cash flow of $0.8 billion. It also returned $2.1 billion to shareholders. It currently offers a quarterly dividend of $0.47 per share and has a dividend yield of 2.66%, as of July 27.
2. Starbucks Corporation (NASDAQ:SBUX)
Number of Hedge Fund Holders: 70
Starbucks Corporation (NASDAQ:SBUX) is among the best food stocks with dividends. The company seems to be reaching a key turning point with Brian Niccol stepping in as CEO, drawing comparisons to the company’s 2008 revival under Howard Schultz. A major focus under his leadership is improving the mobile ordering system, which now accounts for roughly 30% of US sales but has negatively impacted service quality and the in-store experience.
To tackle this issue, Starbucks Corporation (NASDAQ:SBUX) brought in Meredith Sandland— former Taco Bell executive and founder of Empower Delivery— to enhance order sequencing through machine learning. The move highlights Niccol’s strategic focus on assembling strong, capable teams.
Starbucks Corporation (NASDAQ:SBUX) is a strong dividend payer, having paid regular dividends to shareholders for 60 consecutive quarters. During this time, the company’s dividend has grown at an average annual rate of 20%, with increases sustained for 14 straight years. It offers a quarterly dividend of $0.61 per share and has a dividend yield of 2.58%, as of July 27.
1. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 75
McDonald’s Corporation (NYSE:MCD) has evolved significantly since its peak in the mid-20th century, making ongoing efforts to stay current in a rapidly changing restaurant landscape. Despite some recent softness in sales, the company has managed to remain relevant. It’s also favored by investors for its reliable dividend, having raised its payout every year since the mid-1970s— earning it Dividend King status. With a payout ratio near 60% of earnings, the company is well-positioned to sustain its dividend.
McDonald’s Corporation (NYSE:MCD) is prioritizing digital platforms, delivery services, and drive-thru operations to drive future sales growth. By enhancing its mobile app, expanding its loyalty program, and teaming up with third-party delivery providers, the company is working to lead in the delivery space while streamlining the ordering experience for customers.
On July 23, McDonald’s Corporation (NYSE:MCD) declared a quarterly dividend of $1.77 per share, which was in line with its previous dividend. The company has been growing its payouts for 48 consecutive years, which makes it one of the best food stocks with dividends. The stock has a dividend yield of 2.37%, as of July 27.
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