MENU

Bellamy’s Australia Ltd share price up 5% as company pours funds into organic milk

Baby formula star stock Bellamy’s Australia Ltd (ASX: BAL) is at the top of the S&P/ASX 200 gains list at the time of writing – up 4.9% to $17.75 – off the back of deals with three businesses to move closer to its goal of converting all conventional Australian dairy farms to organic.

Bellamy’s has made an initial $5.5 million investment with Fonterra Shareholders’ Fund (ASX: FSF) to develop an organic milk pool in Tasmania – signing up to take 20 million litres of milk from the pool annually with first rights over the additional volume.

A new multi-year agreement with Australian Consolidated Milk will see Bellamy’s guaranteed access to its supply as ACM constructs a new processing plant in Girgarre, Victoria.

And Bellamy’s has formalised an agreement with Tatura Milk Industries Limited to incorporate fresh organic milk into its production process.

Bellamy’s is an unstoppable leader in the baby food and formula space, paving the way for A2 Milk Company Ltd (ASX: A2M) and Bubs Australia Ltd (ASX: BUB) who are also finding some success in the niche.

Bellamy’s shares are up an impressive 148% on its $7.14 share price at this time last year.

With a couple of highly successful years of trade on its books, how much longer will it be until Bellamy's can be considered a blue chip stock?

While we wait and watch check out these top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.