At Safe Money Report, we remain extremely diversified going into 2025 – with positions in conservative dividend-paying stocks, fixed-income vehicles, precious metals-focused investments, plus several crypto-related funds. For this year’s MoneyShow report, I will highlight one lesser-known stock from our core portfolio: Village Super Market Inc. (VLGEA), says Nilus Mattive, editor of Safe Money Report.

I consider it extremely conservative. This lesser-known company – which operates dozens of grocery stores throughout Pennsylvania, New York, New Jersey, and Maryland – is a relatively small business with roots back to 1937.

I’m actually familiar with its main brand — Shop-Rite — because my family often bought our groceries there when I was growing up. And although that location is no longer there, my mom tells me the company’s private-label goods are still being sold at a competitor’s store in the area.

I bring that up for an important reason: Should we see economic weakness, many consumers will ultimately trade down from higher-priced, big-brand names to cheaper “house” products. Indeed, regional grocery chains — especially ones that focus on an array of value items — tend to be relatively recession-resistant businesses.

Village Super Market is no exception because it boasts a long history of profits. This is precisely why, even during the depths of the last financial crisis, it continued to pay out quarterly dividends. Payments back then were far more erratic, however. Sometimes special dividends supplemented relatively low quarterly dividend distributions.

Village Super Market has also paid out $0.25 per share every single quarter since 2012. Plus, the company’s skyrocketing earnings during that same period exceeded $3 per share in the most recent 12 months. 

So, it’s clear that Village Super Market can adequately cover those payments going forward. In fact, it could easily hike the payments or issue another special dividend if it so desired. Of course, even at the current rate, those dividends are worth roughly 3.3% a year. Add that to the defensive nature of Village Super Market’s business, and you have a great stock for today’s environment.

It also trades at just nine times the company’s trailing 12-month earnings. That’s almost half the industry average and one-third of the S&P 500’s current P/E of 28. Meanwhile, the company’s profitability, relatively small size, and geographic focus could also make it an attractive takeover candidate. 

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