Not all high-PEG stocks are those of technology companies. Even those safety stocks in your cupboard and medicine cabinet just may be overpriced. One such example is Campbell Soup (CPB), the processed and packaged foods company. Its most popular brand and product is Campbell Soup, but it also owns Pepperidge Farm cookies and V8 juices. The soup business is in decline for several reasons; the most glaring one is the shift in population over time from the cold northern states to the warmer southern and western states.
Be careful. The company stock has declined consistently since the late 1990s and pays an above-market-average dividend yield of 3.65%, making it one of the top-yielding food and beverage stocks. In my opinion, this makes Campbell Soup a classic value trap.
-- Written by Scott Rothbort in Millburn, N.J.
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