JM Smucker Dividend Raised, Stock (SJM) Moves off Lows

The J.M. Smucker Company (NYSE: SJM) has announced a 2% increase in its quarterly dividend, raising it from $1.08 to $1.10 per common share. This marks the 24th consecutive fiscal year of dividend growth for the consumer packaged goods giant, a testament to its enduring financial strength and commitment to returning value to shareholders. The next dividend payment is scheduled for Tuesday, September 2, 2025, payable to shareholders of record as of Friday, August 15, 2025. The announcement comes at a time when the broader market faces uncertainties, making Smucker's steady hand a potentially attractive beacon for income-seeking investors.

The news arrives on the heels of a volatile period for Smucker's stock. As of July 16, 2025, SJM closed at $107.60, up a notable 3.11% for the day, demonstrating a strong rebound from a recent dip to around $96 on July 14th. This upward swing, however, needs to be viewed within the context of its 52-week range of $93.30 to $125.42.

Currently, the stock trades approximately 16.6% below its 52-week high and 13.3% above its 52-week low, suggesting it's navigating a channel defined by both opportunity and resistance. Furthermore, the stock remains below its 200-day simple moving average of $111.05, which could signal a longer-term downtrend despite the recent positive momentum.

The dividend increase translates to a forward dividend yield of approximately 4.52%, a compelling figure in today's low-interest-rate environment. This consistent history of dividend growth and a relatively high yield make Smucker an appealing option for investors looking for stable income, particularly in sectors often characterized by higher growth, but lower dividend returns.

However, potential investors should delve deeper than the enticing dividend. Smucker's recent performance and future outlook present a mixed bag. While the company reported adjusted EPS of $10.12 for fiscal year 2025, up 2% year-over-year, it also recorded a net loss per diluted share of $11.57. This loss reflects the impact of divestitures and, significantly, the company's acquisition strategy, most notably the $5.6 billion purchase of Hostess Brands in November 2023. This acquisition, while adding iconic snack brands like Twinkies and CupCakes to Smucker's portfolio, has also increased the company's debt load, a factor that warrants careful consideration.

As investors await the next quarterly earnings report (typically released in late August or early September), the core question remains: can Smucker effectively leverage its acquisitions and navigate the evolving consumer landscape to deliver sustainable growth and maintain its commitment to shareholder returns? The dividend increase is a positive sign, but prudent investors should conduct thorough due diligence before adding SJM to their portfolios.