J.M. Smucker (SJM) has a small slice (1.2%) of the U.S. jam and jelly market, but they have a good chance to grow in 2025. A lot of the jam and jelly Americans buy (almost 25%) comes from other countries. This means there's a big opportunity for Smucker's, as a U.S. company with potentially lower prices, to take some of that market share. Even grabbing just 1% of that import market could boost Smucker's yearly sales by about 3%. Other food areas Smucker's is in have similar potential.
Smucker's stock price has dropped recently because the company is making some changes, and analysts have adjusted their expectations. This has made Smucker's dividend (the regular cash payment to shareholders) quite attractive, at over 3.6%. This dividend looks secure because the company pays out about half of what it's expected to earn. Plus, the dividend is likely to keep growing.
Smucker's is expected to keep growing in the following year too, even if it's a bit slower. This growth should be enough to keep their dividend increasing, something they've done for 24 years, with an average yearly dividend growth of 5% over the last five years.
Right now, analysts recommend holding onto Smucker's stock, and they think the price could go up by about 5% from its current level.
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