Jim Trippon CPA

J.M. Smucker (NYSE: SJM), the maker of its namesake jams and jellies and Jif peanut butter, is showing investors it knows how to spread the wealth with a robust 14% dividend increase to its quarterly payout.

The new dividend will be 40 cents a share and will payable on June 1st to shareholders of record on May 14th.

Smucker shares would yield 2.5% when taking the new dividend into account, based on Friday's closing price. That puts the stock in the middle of dividend yields among food companies.

While Smucker makes plenty of other familiar brand names including Hungry Jack, Crisco, Pillsbury and Dutch Girl, the stock doesn't command the headlines that many of its larger rivals do.

Still, Smucker shares are up about 65% in the past year and they are far from expensive at just 1.4 times book value and 14.3 times 2011 earnings.

Looking for dividend growth? Smucker has you covered. The payout has surged 33% in the past three years and has risen 250% in the past nine years. Smucker has also boosted its payout every year since 2002.

The company's payout ratio before the new dividend was announced was 35%, so we view this increase as affordable for the company.