B&G Foods Stock: This 16%-Yielding Gem’s Dirt-Cheap
August 1, 2025
BGS Stock Could Be a Great Contrarian Opportunity
When investors talk about safe dividend stocks, names like Coca-Cola Co (NYSE:KO), Procter & Gamble Co (NYSE:PG), or Johnson & Johnson (NYSE:JNJ) usually pop up. But if you’re willing to dig through the rubble of the market’s forgotten places, you might find something a little more interesting and potentially more rewarding.
Take B&G Foods Inc (NYSE:BGS), for example. B&G Foods stock has been beaten down, no question. It has lost significant value this year and has been a loss-maker for investors for a while. But here’s the twist: despite the volatility and investor pessimism, the stock continues to offer a robust dividend yield that’s close to 17%.
Now, it’d be foolish to think B&G Foods stock doesn’t come with risk. However, for the contrarian investors who understand that cash flow matters more than the headlines, B&G Foods might be a story worth watching closely.
What Does B&G Foods Do?
Headquartered in Parsippany, New Jersey, B&G Foods manufactures, sells, and distributes a portfolio of household products and shelf-stable and frozen foods in the U.S., Canada, and Puerto Rico. Shelf-stable foods are those that can be stored safely at room temperature for an extended period of time and don’t require special handling.
The company owns several well-known brands, including “Green Giant,” “Ortega,” “Cream of Wheat,” “Crisco,” “Dash,” “New York Style,” “Old London,” “Sugar Twin,” “TrueNorth,” “Vermont Maid,” “Victoria,” and “Wright’s.”
B&G markets and delivers its products both directly and through a network of independent brokers and distributors. Its products reach supermarket chains, foodservice providers, big-box retailers, warehouse clubs, non-food retailers, and specialty distributors. (Source: “Profile,” Yahoo! Finance, last accessed July 23, 2025.)
Don’t Let the Stock Price Fool You
At around $4.64 per share, B&G Foods stock is priced like a company on life support. But it’s important to look underneath the surface, where you will find a business that’s still bringing in massive revenue. Household brands like Green Giant, Ortega, and Cream of Wheat are still featured on grocery shelves across U.S. and consumers like them.
Just to give you some perspective: for 2025, even though Wall Street analysts are projecting a decline in sales, B&G Foods is still expected to generate revenue of $1.87 billion. (Source: “Analysis,” Yahoo! Finance, July 23, 2025.)
And the company is expected to be profitable, too. For 2025, earnings per share are expected to be $0.57.
Yes, margins are tight, debt is high, and the market doesn’t love packaged food right now. But B&G Foods has weathered storms before, so it could very well do so again.
Chart Courtesy of StockCharts.com
A High-Yield Dividend That’s Actually Being Paid
Now let’s get to the elephant in the room: the 16% dividend yield.
Most stocks with this kind of payout are either on the brink of a cut or already have one foot in the grave. But B&G Foods has held the line, continuing to return cash to shareholders even in tough times.
Obviously, this doesn’t mean its dividend is untouchable; it is certainly vulnerable. However, what’s commendable here is that the management of the company hasn’t pulled the plug yet—dividends are actually being paid. Just so you know, in 2022, the company reduced its quarterly dividend.
In fact, I know it sounds bold at the moment, but if there’s some cooling in inflation and input costs stabilize, B&G Foods could even provide investors with higher dividends.
B&G Foods stock pays $0.19 each quarter, amounting to $0.76 per share on an annual basis.
B&G Foods Stock Valuations Shouldn’t Be Overlooked
Beyond the dividend, here’s the kicker: B&G Foods stock continues to trade at rock-bottom valuations.
At the time of writing, the stock trades at just six to seven times forward earnings and around 0.13 times sales. That’s deep-value territory. You see these kinds of valuations when companies are on the brink of collapse.
In plain language: investors are valuing each $1.00 of sales generated at B&G Foods at just $0.13, and every $1.00 of earnings at $6.00.
Again, B&G Foods isn’t some speculative biotech with zero revenue. It’s a real business. The low valuations suggest the market is pricing in a worst-case scenario.
Could BGS stock go lower? Sure. But at these levels, you are not paying for perfection. You are buying an option on survival, and getting paid handsomely to hold.
The Lowdown on B&G Foods Stock
Let’s get one thing straight: B&G Foods stock isn’t for everyone. It’s the kind of name that gets ignored in bull markets and dumped in bear markets. Right now, the stock chart is in horrible shape.
But for investors who know how to filter out the noise, who understand the power of cash flow, and brand recognition, this might be one of the few places left on Wall Street where double-digit yields are still alive and kicking. B&G Foods stock had a dividend yield of just over 16%.
If B&G Foods sees a turnaround, great. If not, and business remains the same, or even if just dividends remain the same, income investors are still sitting on yields that many REITs or business development companies would envy.
As per the most recent data, BlackRock Inc, The Vanguard Group, and Dimensional Fund Advisors LP are the biggest institutional holders of B&G Foods stock. Combined, these three institutions own close to 22 million shares. (Source: “Holders,” Yahoo! Finance, last accessed July 23, 2025.)
