Hormel Foods Offers Attractive Dividend Yield Above 4%

Investors Eye Steady Returns Through Dividends

In Friday’s trading, Hormel Foods Corp. (Symbol: HRL) showcased a strong dividend yield exceeding 4% based on its quarterly payout, which is annualized at $1.16. On the day, shares traded as low as $28.82. Historically, dividends have played a significant role in total stock market returns, making them a key consideration for investors.

For example, if you had invested in the S&P 500 ETF (SPY) on December 31, 1999, at a price of $146.88 per share, your investment would have seen a decrease to $142.41 by December 31, 2012—losing $4.67 per share over those years. However, the dividends collected during that period amounted to a substantial $25.98 per share, resulting in a total return of 23.36%. Even with dividends reinvested, this only translates to an average annual return of about 1.6%. In contrast, a sustainable yield above 4% certainly appears appealing.

As a member of the S&P 500 Index, Hormel Foods holds a unique position among large-cap companies. However, it’s important to note that dividend amounts can be unpredictable, influenced by the financial performance of the company. Evaluating Hormel Foods’ dividend history can aid in assessing the likelihood of sustaining its current yield.

Free Report: Top 8%+ Dividends (paid monthly)

Hormel Foods has consistently increased its dividend for over 20 years. For those seeking additional growth stocks, take a look at our Dividend Aristocrats List on Dividend Channel.

Click here to discover 9 other dividend stocks that are currently on sale »

Also see:

• Top Ten Hedge Funds Holding MDXG
• ETFs Holding NK
• GGP Options Chain

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.