10 US Food Stocks To Consider

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Inflation is making a comeback in the US economy. The latest figures showed prices grew 5% in May according to a journal article yesterday. It is not just used cars, fuel, services and other items that are increasing in prices basic necessities such as food is also going up in prices. Unlike other products, people will have to eat and its unlikely food can be avoided despite higher prices. Consumers may switch to cheaper food products but still people that value quality and lack of changes in purchase behavior is likely to benefit food producers. Though higher costs are passed on to customers in higher prices, it is possible for some firms to earn higher profits. From the journal article:

More companies also have started passing on to consumers the higher costs they are facing for raw materials and wages.

Food makers said their costs are climbing at an alarming rate, prompting them to raise some prices.

“The inflation pressure we’re seeing is significant,” General Mills Inc. Chief Executive Jeff Harmening said at a recent investor conference. “It’s probably higher than we’ve seen in the last decade.”

He and his peers point to transportation, commodity and labor costs all increasing at the same time. They expect the trend to continue for at least the rest of this year. As a result, General Mills, Campbell Soup Co. , Unilever PLC, J.M. Smucker Co. and other big food companies are raising prices. Some increases are already visible on supermarket shelves, and more are coming this summer.

Source: U.S. Inflation Is Highest in 13 Years as Prices Surge 5%, WSJ

So what are some of the public food companies in the US?

Some of the 10 large food companies that investors can consider for further research are listed below:

1.Company: Kellogg Co (K)
Current Dividend Yield:

2.Company: General Mills Inc (GIS)
Current Dividend Yield: 3.28%

3.Company: Mondelez International Inc (MDLZ)
Current Dividend Yield: 1.99%

4.Company: Campbell Soup Co (CPB)
Current Dividend Yield: 3.22%

5.Company: ConAgra Foods Inc (CAG)
Current Dividend Yield: 2.95%

6.Company: Kraft Heinz Co (KHC)
Current Dividend Yield: 3.72%

7.Company: The Hershey Company (HSY)
Current Dividend Yield: 1,86%

8.Company: J M Smucker Co (SJM)

Current Dividend Yield: 2.65%

9.Company: Post Holdings  (POST)
Current Dividend Yield: N/A

10.Company: Hormel Foods Corp (HRL)
Current Dividend Yield: 2.03%

Disclosure: Long GIS

Sea Rescue in the North and Baltic Seas: Video

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Millions of people volunteer around the world helping others that get into trouble. The following is a documentary about the work of The German Society for the Rescue of Shipwrecked People (DGzRS). This society of rescuers help rescue people in the North and Baltic seas battling dangerous waves and weather day and night. Their unique boats are purpose-built for their missions.

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Source: WELT Documentary via YouTube

Train Journey Across Turkey on The Dogu Express: Video

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The Dogu Express is an overnight train that travels between Anakara and Kars in Turkey covering a distance of 1,310 km. The below video is an informative world-class documentary on this train from German broadcaster DW. Though the service is currently suspended this train trip should be on the bucket list of every train enthusiast.

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Source: DW Documentary via YouTube

As Costs of New Technologies Fall, Adoption Rates Accelerate

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Innovation is key to a thriving economy. In today’s globalized world, innovation differentiates winners from losers. Technological innovation is especially important since technology drives the most successful economies. For example, Alphabet(GOOG), Apple(AAPL), Facebook(FB), Amazon(AMZN), Netflix(NFLX), etc. are all highly respected and successful tech powerhouses. One thing that is common to these firms is constant innovation. With that said, new technologies are initially expensive and customers have a low rate of adoption. As prices plummet over the years, the adoption rate by households soars. History is full of many examples proving this theory. Commercial airline travel was very expensive when it was invented. Nowadays it is cheap and most people can easily travel to long distances with discount air fares.

Recently I came across an interesting article on innovation at Aberdeen Standard. From the article:

As Figure 2 highlights, production costs for some key new technologies have reduced significantly over the past 50 years. Note the relatively flat lines for autos and traditional sources of energy, as compared to the sharp reductions in technological components and DNA sequencing. The outcome as the subsequent chart shows, has been that adoption rates of new technologies have accelerated over the past 120 years.

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Source: An era of exponential innovation, Aberdeen Standard Investments

Disclosure: No Positions

The World’s Most Dangerous Roads – Argentina: Video

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The World’s Most Dangerous Roads is a multi-part series from French channel Free Documentary. Each episode takes the viewer through some of the most dangerous roads in a country – from Russia to Argentina to many countries in Africa. In the following video, covers the dangerous roads in Argentina. It shows the power of human spirit to survive in harsh environments from driving on dangerous high-altitude roads in the Andes to crossing flooded plains delivering milk. The narrator does a great job as well.

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Source: Free Documentary via YouTube