HSY - Hershey: Dependable Dividend Stock Despite Weak Outlook

2024-04-15 13:43:46 ET

Summary

• The Hershey Company's underwhelming price performance YTD might tempt investors to steer clear of it, but there are advantages to holding the stock.
• Despite an uncertain macroeconomic environment and Hershey's weak outlook, its forward P/E still looks attractive.
• But the highlight is its long-standing dividends, which have grown at 15% CAGR over the past 3 years. With an acceptable dividend payout ratio, these can be sustained, too.

Chocolatier The Hershey Company ( HSY ) hasn’t seen its stock go anywhere in 2024, which compares to the 7.4% increase in the S&P 500 ( SP500 ) year-to-date [YTD]. To be fair, consumer staple stocks tend to be relatively slow-moving, and this also shows up in the fact that even over the past decade it has risen by 85% compared to the SP500's 175% increase....

For further details see: