Food stocks can be highly appealing for income investors that are looking for high dividend yields. Food companies enjoy a number of operating advantages that make them worthwhile investments for retirees.
As the saying goes, everyone has to eat. This basic reality is why food companies tend to generate stable profits which are used to pay consistent dividends, even during recessions.
The following 3 food stocks pay high dividends more than double the S&P 500 average.
Hormel Foods (HRL)
Hormel Foods was founded back in 1891 in Minnesota. Since that time, the company has grown into a juggernaut in the food products industry with nearly $10 billion in annual revenue.
Hormel has kept with its core competency as a processor of meat products for well over a hundred years, but has also grown into other business lines through acquisitions. Hormel has a large portfolio of category-leading brands. Just a few of its top brands include Skippy, SPAM, Applegate, Justin’s, and more than 30 others.
Hormel posted second quarter earnings on May 29th, 2025, and results were largely in line with expectations. Adjusted earnings-per-share came to 35 cents, which was a penny ahead of estimates. Revenue was up fractionally to $2.9 billion, meeting expectations. The company saw a 7% decline in volume and flat sales in both retail and foodservice. Pricing increases helped to offset that.
Hormel’s main competitive advantage is its ~40 products that are either #1 or #2 in their category. Hormel has brands that are proven, and that leadership position is difficult for competitors to supplant. In addition, Hormel has a global network of distributors that few food companies can rival.
The company has increased its dividend for 59 consecutive years, placing it on the exclusive list of Dividend Kings.
Mondelez International (MDLZ)
Mondelez was formed in 1989 as a result of the merger between Philip Morris and General Foods Corp. It focuses on its core categories of chocolate, biscuits, and baked snacks. The global food processor manufactures and distributes snacks in more than 150 countries, generating annual revenues of ~$36 billion.
Its 2024 revenues came from 37% in Europe, 30% in North America, 20% in Asia, Middle East, & Africa, and 14% in Latin America.
Mondelez reported its Q1 2025 results on 4/29/2025. For the quarter, its organic net revenue growth was 3.1%, driven by higher prices: the underlying volume/mix was -3.5% and pricing was 6.6%.
Net revenue rose 0.2% year-over-year to $9.3 billion. Organic net revenue growth of 8.9% in Europe was the strongest, followed by 3.9% in Latin America. In Asia, Middle East, & Africa organic net revenue growth was 1.8%, while it was negative at -3.6% in North America.
The adjusted gross profit dropped 14% to $3.1 billion, along with an adjusted gross profit margin contraction of 5.8% to 33.4%.
Mondelez maintained its guidance for 2025, as follows: Organic net revenue growth of ~5% and adjusted EPS to decline by ~10% on a constant currency basis due to “unprecedented cocoa cost inflation”. It also continues to anticipate to generate free cash flow of more than $3 billion.
From 2015 to 2024, it produced an annualized adjusted EPS growth rate of 7.5%. Generally, it employs buybacks which create a tailwind for long-term total returns. In addition to that growth catalyst, Mondelez’ revenue tends to grow organically.
Revenue is the primary driver of earnings growth with margins remaining steady in normal market conditions. Emerging markets generally show higher organic net revenue growth than developed markets. Long term, MDLZ should continue to innovate, invest in its brands, and expand its offerings.
MDLZ has increased its dividend for 12 consecutive years and the stock currently yields 2.8%.
W.K. Kellogg (KLG)
WK Kellogg Co. specializes in offering a range of ready-to-eat cereal products, featuring popular brands such as Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, and Kashi.
On May 6th, 2025, WK Kellogg posted its Q1 results for the period ending March 29th, 2025. This was WK Kellogg’s 7th quarter as a standalone company following its separation from Kellanova. For the quarter, the company’s net sales came in at $663 million, down 6.2% from the prior-year period.
While the price/mix was up 3.0%, volume was down 8.6%. In other words, price elasticity and reduced retailer inventory were the main drivers of the decline in revenues.
Despite lower revenues, first-quarter adjusted EBITDA came in at $72 million, reflecting a 4.0% year-over-year decrease. Notably, the company’s adjusted EBITDA margin rose by 20 basis points to 10.8%, due to improved gross margin and disciplined cost management.
Net income was $18 million, down from $33 million last year. On a per-share basis, the net income was $0.20, compared to net income per share of $0.38 reported in the same period last year.
Management lowered its fiscal 2025 organic net sales projections to a range of -2.0% to -3.0%. Adjusted EBITDA growth is now projected to be flat to -2.0%.
The company enjoys a substantial competitive advantage attributed to the iconic status of its brands and a well-established North American distribution network. The company holds a 27.4% market share in the U.S. and a 38.9% market share in Canada, which are likely to grow further following the spin-off.
KLG shares currently yield 4.2%.
Disclosure: No positions in any stock mentioned
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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul.