Hershey (NYSE: HSY) is currently facing a significant supply challenge, with cocoa prices rising sharply, affecting profitability. The company reported a nearly 32% drop in first-quarter adjusted earnings, with projections suggesting a mid-30% decline for the full year. Despite this, Hershey expects organic sales to increase by at least 2%. The stock’s yield has reached a historically high 3.5% due to investor concerns.
Realty Income (NYSE: O), a major net lease real estate investment trust (REIT), is grappling with the impact of rising interest rates, complicating profitable property acquisitions. This has led to challenges for many REITs, including Realty Income, which has a dividend yield of 5.7%, close to a 10-year high. The company is positioned to endure current market turbulence due to its investment-grade-rated balance sheet.
Both Hershey and Realty Income represent potential investment opportunities for those willing to navigate through their current challenges, offering historically attractive dividend yields while awaiting improved market conditions.
