Hershey (NYSE: HSY) shares have experienced a decline of over 40% from their all-time highs in 2023, presenting a potential buying opportunity for investors. The company primarily focuses on confections, including iconic brands like Reese’s peanut butter cups. As of 2024, Hershey is navigating challenges related to elevated cocoa prices, which could impact its costs and profit margins.
Despite the current market volatility, Hershey maintains a strong historical trend of increasing dividends, with a current yield of 3.5%—near its highest levels in decades. Given the company’s solid fundamentals and the Hershey Trust’s control over voting rights, there is optimism regarding its long-term growth and continuous returns to shareholders.
Investors should consider the potential for future dividend growth even as cocoa prices remain high, as the company has historically managed commodity fluctuations effectively. This resilience, combined with the likelihood of increasing consumer prices for its products, positions Hershey as a long-term investment option.
