Hormel Foods said on March 27, 2023 that its board of directors declared a regular quarterly dividend of $0.28 per share ($1.10 annualized). Previously, the company paid $0.28 per share.
Shares must be purchased before the ex-div date of April 14, 2023 to qualify for the dividend. Shareholders of record as of April 17, 2023 will receive the payment on May 15, 2023.
At the current share price of $38.97 / share, the stock's dividend yield is 2.82%. Looking back five years and taking a sample every week, the average dividend yield has been 2.07%, the lowest has been 1.66%, and the highest has been 2.84%. The standard deviation of yields is 0.18 (n=236).
The current dividend yield is 4.20 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.61. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.18%, demonstrating that it has increased its dividend over time.
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Analyst Price Forecast Suggests 13.17% Upside
As of March 28, 2023, the average one-year price target for Hormel Foods is $44.10. The forecasts range from a low of $35.35 to a high of $51.34. The average price target represents an increase of 13.17% from its latest reported closing price of $38.97.
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The projected annual revenue for Hormel Foods is $12,855MM, an increase of 3.79%. The projected annual non-GAAP EPS is $1.91.
What is the Fund Sentiment?
There are 1300 funds or institutions reporting positions in Hormel Foods. This is an increase of 46 owner(s) or 3.67% in the last quarter. Average portfolio weight of all funds dedicated to HRL is 0.18%, a decrease of 11.62%. Total shares owned by institutions increased in the last three months by 0.29% to 255,770K shares. The put/call ratio of HRL is 1.01, indicating a bearish outlook.
What are Large Shareholders Doing?
Capital International Investors holds 11,966K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 11,974K shares, representing a decrease of 0.07%. The firm decreased its portfolio allocation in HRL by 7.82% over the last quarter.
AWSHX - WASHINGTON MUTUAL INVESTORS FUND holds 9,400K shares representing 1.72% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 8,305K shares representing 1.52% ownership of the company. In it's prior filing, the firm reported owning 8,143K shares, representing an increase of 1.95%. The firm decreased its portfolio allocation in HRL by 5.59% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 6,693K shares representing 1.22% ownership of the company. In it's prior filing, the firm reported owning 6,561K shares, representing an increase of 1.97%. The firm decreased its portfolio allocation in HRL by 5.80% over the last quarter.
Geode Capital Management holds 6,166K shares representing 1.13% ownership of the company. In it's prior filing, the firm reported owning 6,074K shares, representing an increase of 1.49%. The firm decreased its portfolio allocation in HRL by 5.91% over the last quarter.
Hormel Foods Background Information
(This description is provided by the company.)
Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $9 billion in annual revenue across more than 80 countries worldwide. Its brands include SKIPPY®, SPAM®, Hormel® Natural Choice®, Applegate®, Justin's®, Wholly®, Hormel® Black Label®, Columbus® and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named on the 'Global 2000 World's Best Employers' list by Forbes magazine for three straight years, is one of Fortune magazine's most admired companies, has appeared on Corporate Responsibility Magazine's 'The 100 Best Corporate Citizens' list for 12 years in a row, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement - Inspired People. Inspired Food.™ - to bring some of the world's most trusted and iconic brands to tables across the globe.
This story originally appeared on Fintel.
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