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Smucker's Dividend Safe as Campbell's Slashes Payout
28 Sep
Summary
- Campbell's cut its quarterly dividend by 36% due to declining earnings.
- Smucker raised its dividend, showing strong earnings and cash flow.
- Smucker stock has gained 27.47% year-to-date, while Campbell's is down.
Campbell's (NASDAQ:CPB) recently slashed its quarterly dividend by 36%, from $0.39 to $0.25 per share, on September 3, 2026. This move follows a sharp 37% decrease in operating income and a drop in fiscal 2026 adjusted earnings to $2.17 from $2.91.
The snack division heavily impacted Campbell's performance, with organic sales falling 6% and segment operating earnings dropping 34%. The company's liabilities stand at $11.49 billion against $3.85 billion in equity. For fiscal 2027, adjusted earnings are projected to be between $1.65 and $1.80.
In contrast, J.M. Smucker (NYSE:SJM) demonstrated strength by raising its quarterly dividend to $1.12 from $1.10. The company reported first-quarter adjusted earnings of $3.24, exceeding estimates, and revenue growth of 5.0%. Smucker also increased its full-year adjusted earnings guidance to $10.50-$11.00.
Despite a one-time tariff refund that boosted Smucker's results, its underlying growth remains robust. Smucker's operating cash flow improved significantly, and the company is on track to meet its leverage targets. This performance has led to Smucker's stock increasing by 27.47% year-to-date, while Campbell's has declined by 27.02%.
