In this article, we will take a look at some of the best food dividend stocks, according to analysts.
The US food industry continues to evolve as consumer habits shift and environmental challenges increase. Leading food companies tend to have powerful brands that encourage shoppers to pay premium prices while their scale helps them manage costs efficiently. In today’s inflationary environment, having both pricing power and cost advantages is crucial as households face tighter budgets and rising supply chain expenses.
Food prices are among the most unpredictable expenses for households, often fluctuating because of factors like extreme weather, disease outbreaks, and global supply issues. These factors have all contributed to higher prices over the past year. Although prices stayed flat between June and July, they were still 2.9% higher than the year before, exceeding the Federal Reserve’s 2% inflation goal, according to the Bureau of Labor Statistics’ Consumer Price Index.
Not all food categories are seeing steep price hikes, but consumers are still feeling the impact of years of inflation. Since 2020, food costs have risen by roughly 26%, based on CPI data.
Chedly Louis, vice president of corporate finance at Moody’s Ratings, noted that while inflation has cooled from the record levels of two years ago, food prices remain well above pre-pandemic levels.
As an essential consumer product, food remains in steady demand, making the sector relatively resilient and often a safe haven for investors during economic slowdowns. Given this, we will take a look at some of the best food dividend stocks according to analysts.
Our Methodology:
For this list, we scanned Insider Monkey’s database of Q2 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. From that group, we further refined our selection criteria by identifying stocks with a projected upside potential of over 5% based on analyst price targets, as of October 5. The stocks are ranked according to their upside potential.
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).
14. General Mills, Inc. (NYSE:GIS)
Analyst Upside Potential as of October 5: 6.7%
General Mills, Inc. (NYSE:GIS) is one of those companies that’s been around so long, most people don’t even realize how many of their favorite brands it owns. From Cheerios and Pillsbury to Häagen-Dazs, Progresso, Yoplait, and Green Giant, its products cover just about every aisle in the grocery store.
Lately, higher inflation and a shaky economy have been changing the way people shop. General Mills, Inc. (NYSE:GIS) seems well aware of that and has been trying to adjust by cutting prices here and there, running more promotions, and finding ways to remind customers that their brands still offer good value.
Sales have taken a bit of a hit, especially in snacks, and profits aren’t quite as strong as they used to be. Even so, General Mills, Inc. (NYSE:GIS) remains comfortably in the black and continues to stick by its dividend, which investors appreciate. One part of the business that could see real growth in the years ahead is pet food. Since buying Blue Buffalo back in 2018, the company has been expanding that segment steadily, and it’s shaping up to be a long-term winner.
General Mills, Inc. (NYSE:GIS)’ 127-year track record of regular dividends has always grabbed investors’ attention. On September 29, the company declared a quarterly dividend of $0.61 per share, and as of October 5, it has a dividend yield of 4.85%.
13. McDonald’s Corporation (NYSE:MCD)
Analyst Upside Potential as of October 5: 7.2%
McDonald’s Corporation (NYSE:MCD) has come a long way from its early days as a small burger stand in Southern California. Today, it’s a global icon with more than 44,000 restaurants spread across over 100 countries — a scale few brands have ever matched.
In tougher economic times, McDonald’s Corporation (NYSE:MCD) often finds itself in a stronger position. When people start tightening their budgets, the company’s value meals become an easy choice. It has been leaning into that trend again, putting affordability front and center on its menu, and customers seem to be responding.
Looking ahead, McDonald’s Corporation (NYSE:MCD) is planning to invest heavily in artificial intelligence. The goal is to use AI to sharpen efficiency and make its already-successful franchise model even more profitable. With operating margins comfortably above 45% and per-share earnings up 12% in the latest quarter, the company looks well placed to keep raising its dividend payouts.
McDonald’s Corporation (NYSE:MCD) already holds a 48-year track record of consistent dividend growth. This means that the company is just two years away from becoming a Dividend King. Its quarterly dividend currently sits at $1.77 per share for a dividend yield of 2.35%, as of October 5.
12. Hormel Foods Corporation (NYSE:HRL)
Analyst Upside Potential as of October 5: 8.13%
Hormel Foods Corporation (NYSE:HRL), the company behind many familiar grocery staples, had a somewhat uneven performance in its fiscal third quarter of 2025. The food maker reported adjusted earnings of $0.35 per share on $3.03 billion in sales. That was slightly better than expected on the revenue side but fell short of analysts’ profit estimates, which were around $0.41 a share.
Organic sales were up 6% from a year ago, and overall revenue climbed roughly 4.5%. Even so, profits slipped about 5% compared to last year’s results. To make things tougher, Hormel Foods Corporation (NYSE:HRL)’s management issued a cautious outlook for the next quarter that didn’t do much to lift investor confidence.
For the upcoming period, the company expects revenue to land somewhere between $3.15 billion and $3.25 billion. That’s only a modest improvement from the $3.1 billion it reported in the same quarter last year. Organic sales growth is now projected to slow to a range of 1% to 4%, a clear step down from the stronger growth seen earlier in the year.
That said, Hormel Foods Corporation (NYSE:HRL)’s dividend provides a little relief to worried investors. The company has been rewarding shareholders with growing dividends consistently for the past 59 years and offers a per-share dividend of $0.29 every quarter. The stock supports a dividend yield of 4.71%, as of October 5.
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