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THE J. M. SMUCKER COMPANY LOGO
The J. M. Smucker Company logo. (PRNewsFoto/The J. M. Smucker Company)
Financial analysts have responded favorably to moves the $8 billion J. M. Smucker Company has been making to woo back customers in certain segments, including coffee, and to reports that it is increasing its quarterly dividend share from $0.64 to $0.67 per common share, an increase of 5%. The majority of those whose ratings changed have moved in a positive direction, which in some meant a neutral rating.
Smuckers decreased the price of most of its packaged coffee products sold under the Folgers and Dunkin' Donuts brand names by an average 6% effective July 1 (though it has no effect on coffee sold in Dunkin’ Donuts restaurants). Nor does the decrease apply to K-Cup pods. In 2014 the company raised coffee prices by 9%, later termed a “misstep” by executives as volume in mainstream retail outlets fell 13%.
Regarding the dividend increase, Richard Smucker, c.e.o. commented, "We are pleased with the Board's action to increase the quarterly dividend rate, which reflects the confidence we have in our business and its ability to generate strong cash flow. This action represents our 14th consecutive year of dividend growth, as dividends remain an important component of creating value for our shareholders."
Learn more: http://www.jmsmucker.com/investor-relations/smuckers-financial-news-releases