Income is a big part of investors' returns. Stocks, mutual funds and fixed income ideas in this column are featured because they are relatively solid in their ability to pay dividends or interest. We're giving income investors a resource to start their research for investments that give better yields with lower risk.

In addition, it makes canned beans, such as kidney, chili, and others; vinegars and cooking wines for use in preparation of salad dressings, as well as in various recipe applications, including sauces, marinades, and soups; seasonings; mild and full-flavored molasses products and a blackstrap molasses products; and maple-flavored syrup in regular, sugar-free, and sugar-free butter varieties.

B&G Foods distributes through a network of independent brokers and distributors to supermarkets, mass merchants, warehouse clubs, wholesalers, food service distributors and direct accounts, specialty food distributors, military commissaries, and non-food outlets. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1996 and is headquartered in Parsippany, New Jersey.

Some of B&G's brands you'll know, ones like Cream of Wheat, Ortega and B&G. They've become household names. In fact most households have one or two of their products. This is a small company (market cap of $1.01 billion) that's been growing in all the right ways. And it pays a nice dividend.

Sales for the last 3 years were $487 million, $501 million and $513.5 million. This year, 4 analysts expect $543.18 million (up 5.8%), then see $559.63 million in 2012, up another 3%. Certain products are moving off the shelves faster than ever. Cream of Wheat (hot cereal) sales were up 8.4% to $13 million in the second quarter. Las Palmas, maker of Mexican sauces, saw sales jump by 22.4% in the second period. Part of the revenue gain came from price hikes, averaging about 2.5% across all brands. Whether these prices stick remains to be seen as consumers still aren't feeling too flush. Wal-Mart accounted for 16.2% of sales in 2010. B&G's top 10 customers did 50.6% of all revenues.

From higher sales, better profits usually flow. That's certainly the case with B&G. Earnings per share were 27 cents in 2008, went to 61 cents in '09, followed by 90 cents in '10. This year, 6 analysts have a consensus estimate of $1.07 (up 19%), then forecast $1.10 for 2012. For the third quarter, expect 25 cents vs 20 cents last year in the third. In the final quarter, look for 29 cents compared to 28 cents last year in the fourth.

Late last year, B&G bought Don Pepino, Violet and Sclafana, all under the Violet Packing name, which make pasta and pizza sauces. Consolidating those acquisitions may affect earnings and margins, though the CEO, David Wenner, sated that he expected the new brands to add $13 to $15 million in net sales and increase earnings by 2 cents this year.

The challenge for B&G is to expand and extend its brands as well as add new ones. But the landscape is changing as grocers aren't resetting their shelves as often as they were, making it more difficult for new products (or brand extensions) to get on shelves. With this new order, larger food companies won't be selling off their established brands, core or noncore, that have precious shelf spots. That makes acquisitions more of a challenge for B&G.

There's no question, earnings as strong as BGS's get rewarded by shareholders, as they push the stock price higher. That's mostly been the case since early in 2009 when the it traded at $3.50 a share. Since then, it's been almost straight up with the exception of a violent, short crash last year that sent the price from $10 to $4.10 in a matter of days, only to see it recover and finish last year at $13.90. Last week, it reached an all-time high of $21.83. In the last 52 weeks, the stock is up 68.2%. Much of the good news is already baked in these beans.

Essential numbers:
- Market Cap: $1.01 billion
- Trailing P/E: 19.7
- Forward P/E: 19.3
- Price to sales ratio: 1.85
- Price to book: 4.18
- Operating margin: 20.79%]
- Profit margin: 9.76%
- Return on equity: 22.78%
- Return on assets: 7.98%
- Total cash: $98.11 million
- Cash per share: $2.06
- Total debt: $477.99 million
- Total debt/equity: 201.49%
- Current ratio: 3.99
- Book value per share: $4.97
- Beta: .97
- Total shares outstanding: 47.7 million
- Float: 47.8 million
- Held by insiders: 2.1%
- Held by institutions: 55.9%
- Annual dividend: 92 cents
- Yield: 4.3%

Income investors should like this stock for its solid growth in the annual payout: 68 cents in 2010, 80 cents in 2011 and a current rate of 92 cents for 2012. But be aware of the leverage here (debt is 200% of equity). When rates rise, interest payments may get taken from the dividend.

- Company Web site: www.bgfoods.com