Another Dividend Increase
From The Food Sector
This week has been a veritable buffet of dividend increases from the food sector and that's good news for income investors. We've already highlighted dividend hikes from Sysco (NYSE: SYY) and Campbell Soup (NYSE: CPB). On Thursday, restaurant operator and pork distributor Bob Evans Farms (Nasdaq: BOBE) boosted its quarterly dividend by 12.5% to 18 cents a share. The new dividend is payable on December 15 to shareholders of record on December 4. Bob Evans shares currently yield 2.4%.
Showing that its balance sheet is in fine shape, Bob Evans Farms also said it will purchase 1 million of its own shares under a buyback program that will last until April 30, 2010. The company also announced it has reduced its debt load by $66 million this year. Last week, the company said fiscal second-quarter profits rose by 37%, helped by lower interest payments and tax rates.