2024-03-03 13:17:00 ET
Dividend stocks with high yields are often a red flag. When investors don't trust the dividend, the share price falls, and the yield rises abnormally high. A company that consistently raises its dividend is a green flag. Increasing dividends signal management's confidence in the business.
So, what happens when a Dividend King , a stock with 50 or more years of consecutive dividend growth, trades at its highest-ever dividend yield? That's where Hormel Foods (NYSE: HRL) finds itself today.
The question is whether Hormel's yield is an opportunity or a trap .
For further details see:
This Dividend King's Yield Has Never Been This High. Time to Buy the Stock?