B&G Foods Inc. (BGS) performed well in 2012. The food retailer has surpassed earnings estimates in the first 3 quarters of the year, increased dividend rates regularly and has frequently acquired complimentary brands. In the past 10 quarters, this Zacks #2 Rank has beaten earnings estimates 7 times and matched 3 times. It also pays an impressive dividend yield of 4.1%, which makes it ideal for income investors.

Solid Third Quarter

On October 18, B&G Foods reported third-quarter adjusted earnings of 35 cents per share, surpassing the Zacks Consensus Estimate by 9.4% and trouncing last year's performance by 40.0%.

Total sales grew 15.9% year over year to $154.2 million, driven by the addition of the Culver Specialty brands and improving trends in the base business. The base business gained from strong pricing and a product mix shift toward the higher margin Culver Specialty brands, which offset the headwinds from volume.

Gross margins expanded 470 basis points to 35.9%, driven by pricing gains and a favorable sales mix.

After acquiring the Culver Specialty brands last year from Unilever, B&G Foods acquired two complementary snack brands from Chipita America, Inc. this past October for $62.5 million: New York Style and Old London.

For 2012, the company now expects EBITDA to reach the higher end of its previously provided guidance of $168 million to $170 million, reflecting a year-over-year increase of 29% at the mid point. Subsequently, the company is optimistic about achieving positive volume growth in the fourth quarter of 2012.

Attractive Dividend

In addition to registering robust earnings growth, B&G Foods pays a regular quarterly dividend of 29 cents per share, representing an annual dividend yield of 4.1%. The company has raised the payout four times since early 2011, including a 7.4% increase in October and a 17.1% increase in February this year.

Earnings Estimates Going Up

Over the last 60 days, the Zacks Consensus Estimate for 2012 has gone up 1.4% to $1.41 per share, reflecting a year-over-year increase of 29.1%. The Zacks Consensus Estimate for 2013 has advanced 2% to $1.50 per share over the same time frame, reflecting a year-over-year increase of 6.8%.

Reasonable Valuation

B&G Foods currently trades at a forward price-to-equity (P/E) of 21.11x, reflecting a very small premium of 2.9% to the peer group average of 20.52x. The stock is trading at a premium to the peer group average on a price-to-sales and price-to-book basis as well. However, on a return on equity (:ROE) basis, the stock has a trailing 12-month ROE of 26.8%, which is above its peer group average of 17.3%.