Small-cap stock Lamb Weston (NYSE: $LW) isn’t a household name. But many of its products are likely in your freezer.
The Idaho-based company is one of the world’s largest producers of frozen French fries and other frozen potato products.
A going concern since 1950, Lamb Weston is a major player in the U.S. agriculture sector and buyer of potatoes.
It’s an easily understandable business that has succeeded for more than 75 years. Lamb Weston has been publicly traded since 2016 when it was spun off from ConAgra (NYSE: $CAG).
LW stock hasn’t set the world on fire. Over the past five years, the company’s share price has declined 48%, including a 19% decrease over the past 12 months.
Lamb Weston’s shares currently trade at $41.49 U.S., and the company has a market capitalization of $5.62 billion U.S., making it a small-cap concern.
However, the shares offer stockholders a hefty quarterly dividend payment, which could be attractive to income investors.
Lamb Weston currently pays a quarterly distribution of $0.38 U.S. per share, giving the stock a chunky yield of 3.66%. Management has raised the dividend for eight consecutive years.
The dividend was last increased in 2025, meaning that another increase is likely on the way this year.
Another reason to like LW stock is its valuation. The shares currently trade at 19 times this year’s earnings estimates, which is below average on Wall Street right now.
For investors who prize regular and reliable income from their holdings, Lamb Weston could be worth adding to a portfolio.
