B&G Foods Announces Tax Treatment of Common Stock Dividends Paid in 2023

Rhea-AI Summary

B&G Foods, Inc. (BGS) has provided details on the tax treatment for dividends paid in 2023 on the Company’s common stock. The company distributed $0.76000 per share, all treated as a return of capital, with no taxable dividends. Shareholders are advised to review their tax statements and consult tax advisors for individual tax treatment.

Insights

Tax Advisor

The classification of B&G Foods' distributions as a return of capital rather than taxable dividends has significant implications for investors. Primarily, a return of capital reduces an investor's cost basis in the stock, which could defer taxes until the stock is sold. This is in contrast to dividends, which are typically taxed in the year they are received. The deferral of tax liability may be advantageous for investors seeking to optimize their tax positions. However, once the adjusted basis of the stock reaches zero, any further return of capital distributions would be taxed as capital gains.

Investors need to be aware that the reclassification can affect their investment strategy, particularly if they rely on dividend income for cash flow. In such cases, the lack of taxable dividends might necessitate a reassessment of portfolio yields and cash flow expectations. Moreover, this treatment underscores the importance of accurate record-keeping for tax purposes, as it directly impacts capital gains calculations upon the sale of the stock.

Financial Analyst

From a financial analysis standpoint, the shift to return of capital indicates that B&G Foods is not generating enough taxable income to cover its dividend payments. This could be a red flag for the company's financial health and sustainability of its dividend policy. Investors and analysts should closely examine the company's earnings and cash flow statements to assess the underlying reasons for this tax treatment.

Furthermore, the market's reaction to such news can be mixed. While some investors may appreciate the tax-efficient nature of return of capital, others may be concerned about the company's long-term profitability and ability to generate income. It is essential to monitor the stock's performance and investor sentiment following the announcement, as it may provide insights into market perceptions of the company's financial trajectory.

Market Research Analyst

In the context of the broader food industry, companies often strive for a balance between returning value to shareholders and reinvesting in the business for growth. The announcement by B&G Foods should be analyzed against industry benchmarks and peer performance. If B&G Foods' approach deviates significantly from its peers, it could suggest strategic differences or signal a unique financial situation.

It is also critical to understand the competitive landscape and how B&G Foods' financial strategies might affect its market position. For instance, if the return of capital is a result of strategic asset sales or cost-cutting measures, it could have implications for the company's long-term competitive advantages and operational capabilities.

PARSIPPANY, N.J.--(BUSINESS WIRE)-- B&G Foods, Inc. (NYSE: BGS) today explained the tax treatment for dividends paid in 2023 on the Company’s common stock. Holders are urged to check their 2023 tax statements received from brokerage firms in order to ensure that the cash distribution information reported on such statements conforms to the information reported herein.

Additional information concerning the tax treatment of dividends paid in 2023 is posted to the Investors section of B&G Foods’ website, www.bgfoods.com, under the headings “FAQs” and “IRS Form 8937.” Holders are also urged to consult their own tax advisors to determine their individual tax treatment.

In 2023, B&G Foods distributed $0.76000 per share of common stock (CUSIP # 05508R 10 6). Based on U.S. federal income tax laws, B&G Foods has determined that all of such distributions will be treated as a return of capital and no portion will be treated as a taxable dividend. Generally, the portion of the distribution on the common stock that is treated as a return of capital should reduce the tax basis in the shares of common stock up to a holder’s adjusted basis in the common stock, with any excess treated as capital gains.

The table below summarizes the tax treatment for dividends paid in 2023 on the Company’s common stock.

Declaration Date	Record Date	Payment Date	Total Per Share Distribution	2023 Taxable Dividend	2023 Return of Capital
11/9/2022	12/30/2022	1/30/2023	$0.19000	$0.000000	$0.19000
2/27/2023	3/31/2023	5/1/2023	$0.19000	$0.000000	$0.19000
5/16/2023	6/30/2023	7/31/2023	$0.19000	$0.000000	$0.19000
8/1/2023	9/29/2023	10/30/2023	$0.19000	$0.000000	$0.19000
2023 Totals			$0.76000	$0.000000	$0.76000

About B&G Foods, Inc.

Based in Parsippany, New Jersey, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the United States, Canada and Puerto Rico. With B&G Foods’ diverse portfolio of more than 50 brands you know and love, including B&G, B&M, Bear Creek, Cream of Wheat, Crisco, Dash, Green Giant, Las Palmas, Le Sueur, Mama Mary’s, Maple Grove Farms, New York Style, Ortega, Polaner, Spice Islands and Victoria, there’s a little something for everyone. For more information about B&G Foods and its brands, please visit www.bgfoods.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240219604991/en/

Investor Relations:

ICR, Inc.

Dara Dierks

866.211.8151



Media Relations:

ICR, Inc.

Matt Lindberg

203.682.8214

Source: B&G Foods, Inc.

FAQ

What is the total per share distribution for dividends paid in 2023 by B&G Foods (BGS)?

The total per share distribution for dividends paid in 2023 by B&G Foods (BGS) was $0.76000.

How are the dividends paid in 2023 on B&G Foods (BGS) common stock treated for tax purposes?

All dividends paid in 2023 on B&G Foods (BGS) common stock are treated as a return of capital, with no portion being taxable dividends.

Where can shareholders find more information on the tax treatment of dividends paid in 2023 by B&G Foods (BGS)?

Shareholders can find more information on the tax treatment of dividends paid in 2023 by B&G Foods (BGS) on the Investors section of the company’s website under the headings 'FAQs' and 'IRS Form 8937.'

What should shareholders do to ensure accurate cash distribution information for dividends paid in 2023 by B&G Foods (BGS)?

Shareholders should check their 2023 tax statements received from brokerage firms to ensure that the cash distribution information reported on such statements aligns with the information provided by B&G Foods (BGS).

Why is it important for shareholders to consult their tax advisors regarding the tax treatment of dividends paid in 2023 by B&G Foods (BGS)?

It is important for shareholders to consult their tax advisors to determine their individual tax treatment regarding the dividends paid in 2023 by B&G Foods (BGS) as tax implications may vary based on individual circumstances.