Friday, July 10, 2015

Sweetening Your Portfolio With The Hershey Company Dividends

The Hershey Company (NYSE:HSY) has a rich history of rewarding shareholders with growing profits and increasing dividends. The Hershey Company gets overlooked to their short dividend growth streak of 5 years after holding the dividend steady during the financial crisis. After reduced guidance for FY 2015 along with struggling expansion into the Chinese market, the share price is down over 13% YTD which has brought the valuation down to a better territory. The Hershey Company closed trading on Thursday, July 2nd at $90.04 giving investors a current yield of 2.38%. 

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The Hershey Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates: 

Historically, owners of Hershey Company have earned decent returns. According to longrundata.com, HSY has delivered investors with a total return of 84.1% or 6.3% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Hershey has delivered.

Continue reading The Hershey Company stock analysis here. Also, you can find the rest of my stock analysis reports here.

4 comments:

  1. Love Hershey. I wish that stock would occasionally crash but it's worth buying at today's levels.

    ReplyDelete
    Replies
    1. Adam,

      Yeah there's not many chances to buy this one at a discount. Of course, there's a very good reason for that. The company is flat out excellent. I think $90 or less is a great entry point for HSY right now. I would have added some this week except I had no cash ready in my brokerage account. I was caught transferring money around so I missed the opportunity. Hopefully the volatility continues over the coming weeks and I can get a chance to correct that.

      Thanks for stopping by!

      Delete
  2. I'd love to see P/E ratio in your snapshot.
    WE

    ReplyDelete
    Replies
    1. WE,

      Unfortunately I'm limited in the amount of words I can provide in linking to my articles written on SA. However, the good thing is that the website is free and there's a wealth of great information there. I do provide P/E ratios in the full analysis though.

      Thanks for stopping by!

      Delete