Spinoff Spotlight: Maple Leaf Foods Inc.

Article Excerpt

MAPLE LEAF FOODS INC. $24 is a hold. The company (Toronto symbol MFI; Consumer sector; Shares outstanding: 123.8 million; Market cap: $3.0 billion; Dividend yield: 4.0%; Takeover Target Rating: Medium; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels. It also makes plant-based hamburgers, hot dogs and other protein products under the Lightlife and Field Roast brands. Maple Leaf still plans to spin off its pork processing business, which raises and processes hogs, as Canada Packers Inc. It aims to complete the transaction by the end of 2025. Exports to the U.S. account for just 10% of Maple Leaf’s sales, so it has little exposure to tariffs. The company is so confident in its prospects that it raised your quarterly dividend 9.1% with the March 2025 payment. The new annual rate of $0.96 a share yields a high 4.0%. The combined dividend of the two firms will be no less than the value of the Maple Leaf annual dividend just prior to…