The Dividend Daily

Protein producer Tyson Foods, Inc. (TSN) was downgraded on Wednesday by analysts at JP Morgan.

The analyst cut its rating on TSN to “Neutral” from “Overweight,” and lowered its price target on the stock to $12 from $14. Tyson shares had closed at $13.19 on Tuesday.

Despite the downgrades, JP Morgan maintained its 2009 EPS estimates of $0.33 for the Springdale, Arkansas-based company.

Tyson Foods shares fell 3 cents, or -0.2%, in morning trading Wednesday.

The Bottom Line
We have avoided shares of TSN since our early June coverage began last year, when the stock was trading at $16.17. The company has a dividend yield of 1.21%, based on last night’s closing stock price of $13.19. The stock has technical support in the $11 price area. If the shares can firm up, we see overhead resistance around the $14-$15 price levels. We would remain on the sidelines for now.

Tyson Foods, Inc. (TSN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.