The poultry industry produces meat and eggs for human consumption. It’s an important part of the food industry, providing protein-rich sources of food for people all over the world. That said, here’s a look at the best poultry stocks to buy now.
Best Poultry Stocks
Tyson Foods, Inc. (NYSE: TSN)
Tyson Foods, Inc is one of the largest poultry producers in the world. Together with its subsidiaries, it operates in four divisions: Beef, Chicken, Pork, and Prepared Foods.
The company was founded in 1935 and gained popularity from its chicken sales before it branched out to various protein production.
It is still famous for its chicken products, which include buffalo wings, boneless buffalo wings, chicken nuggets, and tenders.
Some of its well-known brands include Jimmy Dean, Hillshire Farm, Ball Park, Wright Brand, Aidells, and State Fair.
The company also offers its products under the Tyson and IBP brands. Tyson Foods sells its products through its sales staff to grocery retailers, wholesalers, military commissaries, live markets, and more.
At the end of the 2022 fiscal year, the company made a total revenue of $53.28 billion and is said to make an estimated $54.99 billion in 2023.
The Arkansas-based poultry company has a market cap of $20.89 billion and is trading at roughly $58 per share as of March.
Investors earn dividends, with TSN recording a dividend yield of 3.27% and an annual payout of $1.92.
Pilgrim’s Pride Corporation (NASDAQ: PPC)
Founded in 1946, Pilgrim’s Pride Corporation is a subsidiary of JBS S.A.
Pilgrim’s Pride Corporation produces and processes frozen, fresh, value-added chicken, turkey, and pork products.
It then markets and distributes its products to retailers, distributors, and food service operators.
Pilgrim’s Pride Corporation operates internationally in the US, United Kingdom, Mexico, Asia, the Middle East, and Continental Europe.
With over 35,000 employees across its factories and divisions, PPC holds a year-over-year revenue growth of 18.21%. It also has a gross profit margin of 10.37%.
The company does not currently pay dividends.
McDonald’s Corporation (NYSE: MCD)
Another poultry stock is the McDonald’s Corporation. The corporation is popularly known for operating McDonald’s restaurant franchises worldwide.
The company provides burgers, sandwiches, salads, frozen desserts, and other food items. Also, a breakfast menu is available.
It offers a variety of poultry products on its menu, which include the McChicken, McNuggets, Premium Chicken Sandwiches, and more.
Like Walmart, McDonald’s outsources the production of its poultry products and uses them to produce its food.
In 2022, the company had a total revenue of $23.18 billion and a market cap of $197.97 billion.
It also pays dividends to investors, noting an annual payout of $6.08 and a yield of 2.25% on a payout ratio of 56.04%.
Hormel Foods Corporation (NYSE: HRL)
Hormel Foods Corporation is a food company that develops, processes, and distributes various food products to retail, food services, and commercial customers.
The company was founded in 1891 and changed its name from Geo. A. Hormel & Company in 1995.
It engages in the processing, marketing, and sale of both branded and unbranded products, including poultry, turkey, pork, and beef products.
It also offers nutritional products and supplements, industrial gelatin products, desserts, and drink mixes.
Hormel Foods sells its products in many grocery stores. This also includes products under the Hormel brand and their subsidiaries like Applegate, Country Crock, Jennie-O, and Spam.
At the end of its 2022 fiscal year, Hormel recorded a total revenue of $12.46 billion. It also has a market cap of $22.15 billion.
HRM does indeed pay dividends at a ratio of 58.94%, with a yield of 2.71 percent and an annual payout of $1.10.
Cal-Maine Foods, Inc. (NASDAQ: CALM)
Unlike most of the stocks on the list, Cal-Maine Foods, Inc. is a company that specializes in producing only one type of poultry product.
The company is involved in grading, producing, packaging, marketing, and distributing shell eggs.
Cal-Maine Foods offers various specialty shell eggs, including cage-free, nutritionally enhanced, brown, and organic eggs.
The company operates under Farmhouse Eggs, Land O’ Lakes, 4-Grain, and Egg-Land’s Best brand names. It also operates under private labels.
Its headquarters are in Ridgeland, Mississippi, and it made a total revenue of $1.78 billion in 2022.
Financial analysts also expect Cal-Maine to have a $1.23 billion increase in its 2023 revenue.
With a market cap of $2.77 billion and a growth rate of 78.6% year over year, the company also pays dividends. Achieving a yield of 5.43% and an annual payout of $3.08.
Maple Leaf Foods Inc. (OTCMKT: MLFNF)
Maple Leaf Foods Inc. is a carbon-neutral food company. Its food products are produced in the United States, Canada, China, Japan, and internationally.
Products include prepared meats, fresh pork and poultry, ready-to-cook and ready-to-serve snack kits, and plant protein products.
The company offers these products under various brands: Schneiders, Lunch Mate, Maple Leaf, Main Street Deli, Swift, and more.
The Canada-based company takes pride in its strong values, which include sustainability, proper animal care, safe food, and community.
Maple Leaf Foods Inc. has a market cap of $2.49 billion. With an estimated $3.51 billion as its 2022 total revenue, it has a gross profit margin of 9.97%.
With year-over-year revenue growth of 3.18%, the company pays dividends. It records a yield of 2.98% and an annual payout of $0.61%.
Sysco Corporation (NYSE: SYY)
Sysco Corporation is a huge corporation with a diversified range of food services. It provides these food services to various industries, like restaurants, healthcare facilities, schools, and hotels.
Through its subsidiaries, the company markets and distributes food and related products to the food service or food-away-from-home industry.
It operates in the United States, Canada, France, the United Kingdom, and internationally.
Regarding its poultry production, Sysco is known for its wide range of chicken and turkey products. It also produces and sells specialty meats and cuts.
Its operations are carried out through the SYGMA, International Foodservice Operations, U.S. Foodservice Operations, and other segments. It also supplies several non-food items.
Sysco Corporation was incorporated in 1969 and has a market cap of $38.76 billion. The company had a total revenue of $68.64 billion in 2022.
In 2022 the company’s actual earnings per share (EPS) was $3.25 and is estimated to make $4.04 in 2023.
Investors stand a chance to earn dividends, recording a yield of 2.57% and an annual payout of $1.96 on a ratio of 53.44%.
Vital Farms, Inc. (NASDAQ: VITL)
Founded in 2007, Vital Farms Inc. is an ethical food company. The company provides pasture-raised products in the United States.
Headquartered in Austin, Texas, Vital farms partners with over 300 small family farms and is the leading US brand of pasture-raised eggs by retail dollar sales.
In the fourth quarter of 2022, vital farms saw a net revenue increase of 42.2% to $110.1 million. The company also had an adjusted EBITDA of $16.2 million in its 2022 fiscal year.
Analysts expect the company to make an estimated $440.76 million as its 2023 total revenue.
Vital Farms has a market cap of $624.42 million and a gross profit margin of 29.43%.
It does not currently pay dividends.
Are Poultry Stocks a Good Investment?
The poultry industry has been a major source of food production since ancient times and is largely unaffected by economic downturns.
After all, come rain or shine, everybody needs to eat.
In other words, the poultry industry is essential to many’s everyday nutrition.
By default, poultry stocks tend to be less volatile than other stocks, making them an attractive option for investors looking for a steady income stream through dividends.
Additionally, the industry is growing rapidly, with new opportunities opening up for investors.
A global population with an ever-increasing demand for protein-rich food sources drives this growth.
The cost of poultry production is also relatively low compared to other protein sources, such as beef or pork, making it an attractive option for food producers.
Furthermore, the poultry industry is highly regulated, which helps to create a more secure environment for investors.
These factors make poultry stocks a good investment option for diversifying portfolios.
FAQs
Which Fields of Poultry Production Provide the Most Profitable Business?
Many fields within the poultry industry are generally considered profitable such as:
- Broiler Poultry Farming For Meat
- Chicken Hatchery
- Egg Processing
- Frozen Chicken Meat Processing
- Layer Poultry Farming For Eggs
- Organic Manure Production
- Poultry Farming Equipment Shop
- Poultry Feed Manufacturing
What are the Top 5 States in the Production Of Poultry?
The top five poultry producing states are Alabama, Georgia, Arkansas, Mississippi, and North Carolina.
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