J. M. Smucker: A Low Hurdle For Acceptable Returns $SJM

Dividend | Stock | Investing | Valuation

As a dividend growth investor, consumer staples are some of my favorite companies to invest in because they are fairly easy to understand from a business perspective. Additionally, they generate a lot of recurring sales from their customers and are generally necessity, or at least perceived necessity, items that won't see demand drop off a cliff in the face of economic uncertainty.

The J. M. Smucker Company (SJM) is home to many well-known brands of coffee, consumer foods, and pet foods. Some of the brands that Smucker owns are Folgers, Jif Peanut Butter, Meow Mix, and of course, their namesake jellies and jams.

JM smucker price chart
Data by YCharts

Smucker's share price has largely gone nowhere since 2017. Meanwhile, the business has continued to expand, albeit slowly, over that time.

Dividend History

The dividend growth investment strategy is one that I was almost immediately drawn to when I first began investing my savings. The reason being that it helps me to shift the focus from what the share price is doing to how the business is performing and whether the dividend payment can continue to grow in the future.

J.M. Smucker Dividend History

J. M. Smucker Dividend History (J. M. Smucker Investor Relations)

Smucker is a Dividend Champion with 25 consecutive years of dividend growth. Dividend growth has fluctuated quite a bit; however, the trend over time has been pretty solid.

dividend stock analysis, DIY, value investing, long term investing