Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 3, 2020

Article Excerpt

LAMB WESTON HOLDINGS INC., $93.56, New York symbol LW, is a buy. The company sells frozen potatoes and other vegetable products to restaurants and prepared-food makers. Until November 9, 2016, the company was a wholly owned subsidiary of Conagra Brands Inc. (New York symbol CAG). That’s when Conagra spun off Lamb Weston and handed its investors one Lamb Weston share for every three Conagra shares they held. The spinoff has worked out well for investors: the stock hit a new all-time high of $94.46 on Friday and is now up 175% since the split. As well, Lamb Weston has raised its dividend each year since it became a separate company. That includes increasing the quarterly dividend by 15.0% with the February 2020 payment, to $0.23 a share from $0.20. The new annual rate of $0.92 yields 1.0%. Meantime, in its fiscal 2020 second quarter, ended November 24, 2019, Lamb Weston’s sales rose 11.8%, to $1.02 billion from $911.4 million a year earlier. The latest sales…