Dividend Increase: Hormel Foods (HRL)

For 2017, Hormel Foods (HRL) has announced their impressive 51st straight year of a dividend increase.  What’s also impressive is that after 51 straight increases and being in business for almost 100 years, 2017 brings shareholders a healthy 17.24% increase, raising the dividend to $0.17 vs $0.145 per share quarterly.  The current dividend yield for HRL is at 1.95%.  This increase blew past my expectation for the year of a $0.02 or a 13.79% increase.

Pretty amazing stuff coming from a boring food company known for SPAM and its tasty chili products.

Dividend History:

Looking back at the last 13 years, HRL has grown it’s dividend an average of 16.60% per year.  The competition isn’t even close to that dividend growth rate.  What’s even more mind blowing, being a shareholder during that time frame, you would have seen your dividend income increase from $0.1124 to $0.68 annually, that translates to just over a 500% increase in your income in 13 years.  To put that in perspective, imagine your annual pay at work increasing like that…you might actually like your job.

For 2018, I’m holding my expectation of a$0.02 increase.  This translates to an 11.76% increase.

While the dividend yield and amount are not high, that sustained level of growth creates a great opportunity for building an impressive yield on cost down the road.

Company Data:

Market Cap: $18.45 Billion

Dividend Yield: 1.95%

Payout Ratio: 36.36%

Revenue: $9.52 Billion

Cash: $415 Million

Total Debt: $250 Million

PE Ratio: 21.26

Let’s get the obvious out of the way.  This dividend is safe.  That payout ratio of 36% allows plenty of room for future strong growth of the dividend as well.  I love the low debt on the balance sheet, on top of the fact they have more cash to cover that debt.  Even issuing a little more debt at todays current low rates would not concern me.

Performance vs S&P500

What’s a safe and growing dividend without share price appreciation…


Well, going back a decade it’s not even close.  HRL crushes the S&P500.  You’re looking at about 250% vs 50% return.  That is even taking into account a recent big pullback on HRL, which I used to add to my position.


I guess I’m not the only one who likes SPAM.  HRL has rewarded shareholders with not only an impressive growing dividend rate, but amazing capital appreciation as well.  All this coming from a boring food company not getting any attention.  I still stand by my belief of M&A  eventually taking place in the grocery store aisles.  The larger slower growth companies will want to try to accelerate their growth, and a company like HRL would be a nice addition to their portfolio.  So, I still think there is future opportunity still left with this exciting snoozer.

Follow me on the social medias:

Readers Comments (59)

  1. sumycin for sale ceftin online augmentin price Ewaloj ctdwrq

  2. noroxin generic cialis for order order cipro online Gfvwoc nkcmxq

  3. tadalafil without prescription https://sildsuperp.com/ order cialis Rbygvt czozcz

  4. low cost canadian viagra https://xviaged.com/ sildenafil best dosage Jnzlsr yafxkq

  5. sildenafil ed http://cialistedp.com/ best medication for ed Vizugj raasud

  6. xxqk is there a generic viagra http://dietkannur.org kxuz keyw

  7. purchase viagra http://viardos.com/ pills for ed Yvqskd glkyds

  8. cialis 20 refil http://cicilisp.com/ latest treatment for erectile dysfunction Vvtkcc jbdrxr

  9. http://zithromaxfast500.com purchase zithromax online

  10. buy an essay online http://essay2y.com/ academic writing support Bguwvh livhwc

  11. affordable term papers http://essay2y.com/ writing dissertation service Viuttc skxfzd

  12. buy an essay cheap http://essay2y.com/ cheap term papers Dzrwru ncqigw

  13. buy clarinex online http://allergicpls.com/ writing essays for money Vstrra demsup

  14. viagra pills http://virviaga.com/ purchase essay online Lemskd pneyom

  15. gnc ed pills http://strongplled.com/ research paper website Sylktr wvgujq

  16. order sumycin http://antibitc.com/ teach me how to write an essay Lfnuit gixzra

  17. buy cialis online reddit http://edpll.com/ assignment writing services Nnyoad xqwbat

  18. otc cialis generic cialis tadalafil
    generic cialis without prescription

  19. affordable essay writing http://essaywrw.com/ write my essay help Taswka mojwvi

  20. generic cialis bitcoin prices of cialis
    generic cialis no doctor’s prescription

  21. online casino real money http://cacinobz.com/ best casino online Sujvlf dkwwkj

  22. provigil 200 mg http://provipls.com/ provigil online Iyjgwo muenek

  23. ivermectin tablets order – stromectol buy purchase stromectol

  24. http://propeciafavdr.com/ – propecia for sale

  25. prednisone 1 mg tablet: buy prednisone online – can i buy prednisone online in uk

  26. The last measure I byword Gail Dines speak, at a talk in Boston, she moved the audience to tears with her portrait of the problems caused by means of porn, and provoked laughing with her intelligent observations upon pornographers themselves. Activists in the audience were newly inspired, and men at the event – multifarious of whom had not viewed smut as a complication before – queued up afterwards to guarantee their support. The exhibition highlighted Dines’s explosive charisma and the fact that, since the expiry of Andrea Dworkin, she has risen to that most difficult and interesting of mr roles: the community’s cardinal anti-pornography campaigner.


  27. General Message Fro this outcome
    https://tadalafromcanada.com buy cialis canada

  28. http://costpills.com – medications for erectile dysfunction Yzxr83i

  29. cialis online without prescription: erectile dysfunction medications – cialis tadalafil portugal

  30. stromectol indications and usage http://ivermectineffects.com/# ed meds online without doctor prescription

  31. Link exchange is nothing else however it is only placing the other person’s website link on your page at suitable place and other person will also do similar in favor of you.

  32. I was recommended this web site by my cousin.
    I am not sure whether this post is written by him as
    no one else know such detailed about my problem. You are amazing!
    Thanks! http://herreramedical.org/azithromycin

  33. Drugs information for patients. What side effects?
    how to buy cheap depakote tablets in USA
    Everything news about drugs. Read information here.

  34. Teen Girls Pussy Pics. Hot galleries
    rap hoes porn womens sport porn teen gay porn sites hentai porn 3d horse man free videos japanese animation porn

  35. Ищете, где купить тросы, буксирный трос?
    Компания Метизы – крупный поставщик витая пара с тросом от лучших производителей на территории Удмуртская республика.
    Вся продукция сертифицирована и имеет необходимые маркировки.

  36. slotnite free spins
    best online casinos with evolution
    coral 100 free spins
    casino online new york
    high 5 casino free slot games

    bovada casino bonus points

  37. how much does tamoxifen cost tamoxifen breast cancer tamoxifen libido

  38. Смотрю какие призы будут разыгрывать в русских лотереях на сайте https://mir-loto.com/category/prizi написал их админу он пообещал что еще розыгрыши всяких там пятерочек и других магазинов публиковать будут.

  39. Астрологические программы. http://astrologia-profi.ru Профессиональный астролог проводит обучение астрологии, вебинары по астрологии. Консультации астролога, прогнозирование событий, анализ личной жизни, профориентация детей, подбор условий для эмиграции, анализ совместимости мужчины и женщины

  40. Вашим планом станет работать коллектив специалистов. Все Без Исключения эксперты учреждения Proseo Group владеют эффективным навыком во продвижении веб-сайтов со поддержкой сеть интернет-менеджмента также мотивированы достичь значительных итогов согласно Вашему плану

  41. Астрологические программы. http://astrologia-profi.ru Профессиональный астролог проводит обучение астрологии, вебинары по астрологии. Консультации астролога, прогнозирование событий, анализ личной жизни, профориентация детей, подбор условий для эмиграции, анализ совместимости мужчины и женщины

Comments are closed.