Stocks chosen for our portfolio are rewarded for superior rates of dividend growth and revenue growth, as well as for high yields and low payout ratios, notes growth and income expert John Dobosz; here, the editor of Forbes Dividend Investor reviews two food related stocks in his model portfolio.

Parsippany, N.J.-based B&G Foods (BGS) is a holding company that manufactures, sells, and distributes shelf-stable frozen food, and household products in the U.S., Canada, and Puerto Rico.

Its products include frozen and canned vegetables, hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, and wine vinegar. Its brands include Back to Nature, Bear Creek, Cream of Wheat, Green Giant, Mrs. Dash, and Ortega.

Revenue this year is expected to grow 15.7% to $1.92 billion, with earnings up 33.5% to $2.19 per share, giving the stock a forward P/E ratio of 12.4, 17% below its five-year average P/E of 14.9 . There is an ex-dividend date on September 29 for a $0.475 per share payout.

The next earnings report is in early November. The stock has pulled back over the past three weeks following a furious run higher since March, and it maintains a bullish trend.

Pittsburgh, Pa.-based Kraft Heinz (KHC) makes and markets food and beverage products that include condiments and sauces, cheese and dairy, and complete meals.

In its last earnings report on July 30, the company reported second-quarter earnings that topped analysts’ forecasts, as pandemic-fueled buying buoyed profits. Earlier this month, it announced plans to cut $2 billion of costs and to focus on its premier brands.

Warren Buffett’s Berkshire Hathaway (BRK.B) is a big shareholder. Revenue this year is expected to grow 3% to $25.74 billion, with earnings down 6.6% to $2.66 per share, giving the stock a price-earnings ratio of 10.9. The average P/E over the past five years has been 17.8.

The stock also trades 50% below both its five-year average price-sales and price-to-book value multiples. With a debt-to-equity ratio of 0.58, Kraft Heinz is much less leveraged than many of its food peers like Campbell Soup, which sports a debt-to-equity ratio of 2.4.

Kraft Heinz pays a quarterly dividend of $0.40 per share, giving the stock a rich dividend yield of 5.5%. Free cash flow per share of $3.15 is nearly double the $1.60 in annual dividends. Technically, the stock is oversold and the MACD is turning positive.

Subscribe to Forbes Dividend Investor here…