HSY Stock Recent News

Cocoa prices have been soaring this year, hitting record highs and causing headaches for candy companies. While hedging contracts protect the likes of Hershey and Mondelez for now, high cocoa prices could change how they think about innovation.

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Hershey (HSY) have what it takes?

Whenever the Federal Reserve (the Fed) speaks, the whole market, the global financial market, watches closely. A single shift in sentiment and approach to where interest rates may be headed could send markets swinging in either direction, and that's where investors can begin to look for opportunities.

Hershey (HSY) undertakes strategic pricing initiatives to improve its performance. The company regularly brings innovation to its core brands to meet consumer demand.

In the latest trading session, Hershey (HSY) closed at $190.61, marking a -0.27% move from the previous day.

Consumer staples companies tend to be more stable, offering products that consumers buy frequently. Dividend King Hormel Foods is facing a number of headwinds, but it's soldiering on.

Outlines Progress and Future Ambitions Across its Sustainability Priorities HERSHEY, Pa. , June 4, 2024 /PRNewswire/ -- Hershey (NYSE: HSY) today announced the release of its 2023 Environmental, Social and Governance (ESG) Report, sharing progress towards business resilience and impact in its material priorities.

The Hershey Company's dividend yield has surged to almost 2.8%, among the highest levels in at least 10 years. And the company's dividends are safe, too. But limited growth potential is expected due to high payout ratios, increased debt levels, and profit headwinds. Its current P/E is close to the Graham P/E and does not properly price in the above risks in my view.

Hershey has shown resilience in the face of challenges such as cocoa price hikes and inflation, outperforming the S&P 500 for many years. The company has strong brand recognition and pricing power, which contribute to its consistent demand and profitability. With an attractive valuation and a solid dividend growth track record, Hershey offers potential annual returns of 9-11% for long-term investors.

Hershey stock is trading 25% below its all-time high amid skyrocketing cocoa prices, inflation-ridden consumers, and fears of weight-loss drugs potentially hurting sales. True to the motto "paying up for quality", I share the main reasons why I added HSY stock to my portfolio, despite the still somewhat expensive valuation. In particular, I discuss Hershey's profitability, management qualities, long-term incentives and growth opportunities.