HSY: A Solid Dividend Play This Valentine's Week

Valentine’s Day is the second biggest holiday after Christmas for exchanging greeting cards. It’s also one of the most popular days for marriage proposals. That means consumer discretionary dollars flowed out of wallets and into the economy yesterday. But I’d rather spend my money on dividend stocks that will continue to gift returns year after year, like The Hershey Co. (HSY)

 

Person Holding White and Blue Box

Image Source: Pexels

Americans spent nearly $26 billion on Valentine’s Day gifts in 2023. Over 50 million pounds of chocolate are bought in the seven days prior to February 14. It’s estimated that more than 250 million roses are grown for just this one day. And according to Hallmark, 145 million cards are exchanged. That doesn’t include the little cards exchanged by kids.

In short, there was a lot of money thrown around yesterday. But candies get eaten and flowers die. So, sticking with the spirit of this week’s holiday, I set out to find some related dividend stocks for you to gift to your Valentine instead.

The Hershey Co.

FANG stock chart

I’m from Maryland and have a soft spot for memorable trips to Hersheypark as a kid. So, I started there.

Hershey is the company behind popular candy names like Hershey’s bars, Kisses, Reese’s, Twizzlers, and Jolly Rancher, just to name a few. The company was founded in 1894 based on the iconic Hershey’s milk chocolate bar. Today, it has over 90 brands in its stable of sweets.

In 2023, the company had net sales of over $11 billion. And last week the company announced a 15% dividend increase on its common shares. The $1.37 quarterly payment gave Hershey a yield of just 2.8% at recent prices.

Recommended Action: Consider buying HSY.


More By This Author:

Air Products & Chemicals: A Chemical Company With Earnings Issues, But A Solid Long-Term Outlook
A Deep Inflation Dive Shows Why Getting Back To 2% Will Take Time
XLI: An Object Lesson In Why Long-Term Investors Shouldn't React To Every Short-Term Move

Disclaimer: © 2023 MoneyShow.com, LLC. All Rights Reserved.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.