The J. M. Smucker Company (SJM): Among the Best Dividend Growth Stocks with High Yields

Vardah Gill

Wed, May 14, 2025, 7:42 AM 6 min read

We precocious published a database of the 20 Best Dividend Growth Stocks with High Yields. In this article, we are going to instrumentality a look astatine wherever The J. M. Smucker Company (NYSE:SJM) stands against different champion dividend maturation stocks.

Dividend-paying stocks person been gaining popularity among investors owed to their semipermanent advantages. According to Jeremy Zirin, who leads the US equity squad for backstage clients astatine UBS Asset Management, companies with a accordant way grounds of expanding dividends are a astute prime for investors seeking a balanced attack successful the existent marketplace environment. When markets dipped successful April aft President Donald Trump announced caller tariff policies, investors gravitated toward high-yield dividend stocks. However, arsenic commercialized tensions began to easiness and negotiations progressed, markets recovered. Stocks surged peculiarly aft the US and China agreed to temporarily trim tariffs. He made the pursuing remark astir dividend stocks:

“The higher-dividend-yielding strategies thin to bash amended erstwhile markets are successful existent turmoil and declining, but if there’s much chop, much volatility and perchance upside … you don’t privation to beryllium overly defensive.”

Historically, companies that consistently summation their dividends person tended to beryllium little volatile and often delivered stronger returns than the broader market, including benchmarks similar the S&P Equal Weight Index. According to a study by Guggenheim, from May 2005 done December 2024, firms that either initiated oregon raised their dividends generated an mean yearly instrumentality of 10.5%. In contrast, companies that chopped oregon suspended their payouts posted conscionable 5.5% annually. The wide marketplace returned 10.4% during this timeframe, somewhat down the dividend growers. The study besides highlighted that dividend maturation strategies person historically performed good successful some rising and falling markets, making them an charismatic enactment for investors focused connected semipermanent gains and downside protection.

According to a study by S&P Global, the maturation of planetary dividend payments had been slowing since the post-COVID recovery, but that inclination reversed past year. In 2024, the maturation complaint unexpectedly accelerated to 8%, with shareholders receiving astir $180 cardinal much than the erstwhile year. This summation came arsenic a astonishment fixed the persistent geopolitical and economical challenges. The study besides highlighted that respective sectors and regions saw grounds dividend initiations, including the US technology, media, and telecom (TMT) sector, banks successful Italy and Spain, Japan’s automotive industry, and a wide emergence successful payouts from Mainland China. Even with utmost terms fluctuations, dividend payments from the lipid and state assemblage remained strong. Looking ahead, the study suggested that this precocious level of dividends is apt to clasp steady, with planetary payouts expected to stay astatine $2.3 trillion successful 2025.