Hey Influence Traders
While the country has been focused on the back-and-forth surrounding the $1.2 trillion infrastructure bill — and the $3.5 trillion “human” infrastructure bill — and there is plenty of drama all around, another hefty piece of spending has been instituted …
The Biden administration recently bumped up the monthly SNAP (food stamp) payments to all 42 million participants by 25%.
And that will translate to a roughly $22 billion flow of capital.
The administration claimed the increase was crucial to our democracy to prevent civil unrest over a lack of food.
Given everything going on today I take their threat seriously.
The move did not need congressional approval and will kick in sometime in September.
Now get this, the SNAP program does not publicize which stores get the money.
There is literally NO data!
Who Was It?
Walmart (Ticker: WMT) let slip a few years ago that it gets approximately 18% of SNAP flows.
In addition to Walmart, this news well for other Big Box stores and economical grocery outlets.
The money can only be used for designated purchases, so the places currently receiving SNAP payments are essentially getting a 25% revenue kicker.
Two grocery chain names that I like because of their demographics and nationwide exposure are Albertsons Companies (Ticker: ACI) and the Kroger Co. (Ticker: KR).
We may just go Krogering in Capitol Gains.
Cutting Through the Noise for You,