If you are stressed on how to invest your money, it's highly recommendable that you consider the food industry. Investing in food is a smart idea to boost your financial income. Food processing is one of the most significant sectors in the world. One major caviat is the rise of health fanatics. Investing in companies pushing the integration of food additives is a major factor to look intol Most food companies use yeast, sulfur dioxide, and carrageenan additives in the processing of their products. They use the additive to increase the shelf life of their products therefore reducing food wastage.
Here are some examples of the most profitable food companies pushing towards these changes in additives.The global food, beverage, and additives industries are worth 10% of the world’s GDP, according to Plunkett Research, so it's worth looking into.
Pepsi is a well-known company that produces and sells a wide range of carbonated and non-carbonated drinks. It also deals with food process and packing. Some of the company's products are quaker packaged foods, bottled water, juices, sports drinks and frito snacks. The company has managed to market healthy food and beverage products after it faced slumping soda consumption in the USA. The production of healthy food and drinks has brought great success to the company. Pepsi has partnered up with Buffalo wings a restaurant that promotes their products by serving their drinks and snacks. In 2013, Pepsi reported an increase of 1% in revenue. The growth mainly came from the packed food business. The food production department had a volume of 3% while the beverages grew to an amount of 1% in the same year (2013). The company has financially grown creating a firm dividend ground. In 2013 the company was able to pay 49% of its free cash flow in dividends. Pepsi pays its shareholders approximately $2.27 per share per year.
Mondelz`s particularly deals with sweet snacks like ritz, cadbury, nabisco, oreo, and chips. The company's growth has increased rapidly over the first quarter of this year despite the different conditions like tough currency headwinds and more health-conscious consumers.
Mondelz's organic revenue appreciated by 0.6% in the first annual quarter. Mondelz's is expected to raise its revenue by 1%. The increasing revenue can be attributed to its divestments and cost-cutting strategies. Mondelez pays 1.7% forward dividend yield, which is supported by a payout of 67%. The company has P/E of 40, higher than 38, which is considered average in most industries. This clearly justifies the future expectations of the company at large.
General Mills Company
General Mills deals with a wide range of foods like baking products like bisquick and betty crocker, breakfast cereals like cheerios, haagen-dazs ice cream, green giant, yoplait yogurt, and vegetables and different varieties of pasta and pizzas. General Mills is growing its business toward the production and selling of healthy products. Its earnings are expected to rise from 5% to 7%. The stock gets 21 times earnings, compared to the industry average of 29, and pays a dividend yield of 4.3%, which is supported by a payment ratio of 70%. General Mills has raised its payout annually for 13 consecutive years.
Tyson Foods is one of the leading meat dealers in the United States. Tyson sells pork, chicken, processed foods and beef which are distributed in over 130 countries. Tyson foods was even recognized by plant-based meat companies, proving it's worth to health enthudsiasts, and received a 5% stake. This is one of the most recognized companies out there, and as per current situation it's regarded to be the "future of food."
For the last 15 years, the food industry has substantially grown. It is dynamic and diverse hence providing stability and security for investors. The business has been attractive for its consistent and stable profits. Most people investing in the food industry are smiling all their way to the bank. The future of the food industry is also bright. Invest in the food industry today, you will reap bountiful benefits.