6 Food Processing Stock Picks: Downside Protection With Dividends

In a recent article, I wrote about a world in turmoil: The disaster that hit Japan, revolution in the mid-east and financial problems in Europe. A reader reminded me that in spite of these events, life goes on. Our need to eat is one obvious requirement. There are about 68 companies classified as being in the food processing industry. We screened our list to exclude companies trading as ADRs, trading over-the-counter or with market capitalizations below $500 million. We reduced this list to a final selection of companies that we feel may be under-priced. The food processing industry is, by definition, reliant on agricultural commodity products. The availability and prices of agricultural commodities is affected by weather conditions, disease, government programs, and competition. Operating costs and selling prices are sensitive to energy prices. These are global companies subject to economic downturns, political instability and other risks of doing business globally.... Read more