"We've chosen food wholesaler Nash Finch (NASDAQ: NAFC) as our latest 'bargain stock'," states dividend reinvestment expert Vita Nelson in her advisory, Direct Investing.

"Founded in 1885 and headquartered in Minneapolis, Nash Finch is one of the largest food wholesalers in the United States, with annual sales that should top the $5 billion mark this year.

"It derivces all of its business east of the Rockies, where it distributes food and related goods to 1,600 outlets.

"The company is also the owner and operator of 55 supermarkets in the Midwest. NAFC also has a military unit that supplies about 200 commissaries and Post Exchanges through 5 distribution centers operated exclusively for military business.

"The stock is down from a high of $47.63 made in September, 2008. The stock's $0.72 per share annual dividend provides ayield of 2.5%. Its book value stands at $29.15.

"So what happened? Second quarter earnings apparently disappointed analysts. Net income rose only 1.1%, to $9.4 million, or $0.72 per share, on 19% higher sales of $1.22 billion. In our view, the results were not bad, considering the economy.

"Looking ahead to 2012-2014, Value Line projects that Nash Finch earnings of about $5.65 per share, which could translate into a share price of $50 to $75.

"Consensus estimates call for the company to earn about $3.05 per share this year and $3.30 in 2010, compared with $3.12 in 2008.

"The dividend, which has doubled since 2003, appears secure and could very well increase as earnings rise. The stock appears to have a good long-term total return outlook."