Is Hormel a Good Dividend Stock?
When I think about dividend stocks, I normally think about stocks with above average dividend yields. I don't think that's surprising, but I know it's shortsighted. Why? Because a company with a big yield and little dividend growth can be far less desirable to own than, say, Hormel Foods Corp (NYSE: HRL).
If you were looking for a big yield, then Consolidated Communications Holdings Inc (NASDAQ: CNSL) might pop up on your short list. This rural telecom currently has a yield of around 8.6%. That's pretty alluring since the S&P 500 only yields around 2% today, but there's a small problem. The company hasn't increased the dividend in over a decade as it has worked to compete with cellphone and cable companies. That means the purchasing power afforded by the dividend has been steadily eroded by inflation, which has historically increased by around 3% per year.
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Source: Fool.com
Hormel Foods Corp. Stock
Hormel Foods Corp. is currently one of the favorites of our community with 7 Buy predictions and no Sell predictions.
With a target price of 25 € there is a slightly positive potential of 15.15% for Hormel Foods Corp. compared to the current price of 21.71 €.
