Analyzing Hormel Foods Corporation (HRL): A Reliable Food Dividend Stock
Hormel Foods Corporation (NYSE:HRL) is included among the 10 Best Food Stocks with Dividends.
A close-up of a hand cutting fresh turkeys, revealing the perishable products of the company.
The company is facing several challenges, including rising costs, avian flu, a slow recovery in China, and early issues with its Planters acquisition. While none of these are likely to harm the business long-term, their combined effect is significant. To address this, Hormel is focusing on product innovation, improving efficiency, and revamping its leadership. Backed by The Hormel Foundation, which supports the company’s long-term success, the new management team is well-positioned to guide it through these headwinds.
Hormel Foods Corporation (NYSE:HRL) reported strong earnings in fiscal Q2 2025. The company’s revenue came in at $2.9 billion, which showed a 0.4% growth on a YoY basis. It reported operating income of $248 million, with adjusted operating income reaching $265 million. Management expressed optimism for strong growth in the second half of the year, driven by a portfolio centered on consumer-focused, protein-rich products. They highlighted expected gains from the turkey segment, continued progress with the Planters brand, strength in key market-leading categories, and ongoing advantages stemming from the Transform and Modernize (T&M) initiative.
Hormel Foods Corporation (NYSE:HRL) ended the quarter with nearly $670 million in cash and cash equivalents. The company generated an operating cash flow of $56 million. It currently offers a quarterly dividend of $0.29 per share and has a dividend yield of 3.97%. HRL is a Dividend King with 59 consecutive years of dividend growth under its belt.
While we acknowledge the potential of HRL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
READ NEXT: READ NEXT: Top 10 Safest Dividend Stocks in the UK and 11 Dogs of the Dow Dividend Stocks to Buy Now
Disclosure: None.
Content Original Link:
" target="_blank">
