This food company is expected to grow by 13.5% next year. Its shares have a current dividend yield of 2.40%, paid quarterly.
Hormel Foods Corporation (HRL)
From Investment Quality Trends
Known as George A. Hormel until its name change in 1995, Hormel Foods produces and markets a variety of meat and food products in the U.S. and internationally.
The company’s business is reported under four segments: 1) Grocery Products; 2) Refrigerated Foods; 3) Jennie-O Turkey Store (JOTS); and 4) International & Other. HRL sells food products under four classes: 1) Perishable; 2) Poultry; 3) Shelf-stable; and 4) Miscellaneous. The Perishable category includes fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon (excluding JOTS) products. Shelf-stable products include luncheon meats, peanut butter, chilies, shelf-stable microwaveable meals, hash, stews, flour and corn tortillas, and other items that do not require refrigeration. The Poultry category is comprised of JOTS products. Lastly, the Miscellaneous category primarily consists of nutritional food products and supplements, dessert and drink mixes, and industrial gelatin products.
In February 2021, HRL announced that it has signed an agreement with Kraft Heinz to purchase the Planters business for $3.35B in cash. HRL will acquire four brands under the acquisition: 1) Planters; 2) Nut-rition; 3) Cheez Balls; and 4) Corn Nuts.
HRL has a strong track record of returning cash to shareholders through share repurchases and dividends. As a member of the S&P 500 Dividend Aristocrats Index, HRL has increased dividend payments for 55 consecutive years.
Kelley Wright, IQ Trends, iqtrends.com, info@iqtrends.com, 866.927.5250, Mid-September 2021