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Hormel Foods (NYSE:HRL) is a protein-based foods company that owns brands like Spam, Applegate, Skippy, Muscle Milk, and others. Shares have dropped 7.2% in 2019 as of close on May 14.
The stock is still up 9.2% from the prior year.
Hormel Foods is set to release its second-quarter results next week on May 23. The stock is in elite company as one of the few that can be called a dividend king, having achieved at least 50 consecutive years of dividend growth. In the case of Hormel Foods, it has increased its dividend for 53 straight years.
In the first quarter Hormel reported net sales of $2.4 billion, which were up 1% from the prior year. Three out of its four segments posted earnings growth in Q1 2019, and Hormel reaffirmed its full-year guidance.
Hormel boasts a wide economic moat, but its growth is dependent upon global expansion.
A solid performance in China boosted earnings in the past quarter. Heightened trade tensions between the United States and China could add risk to U.S. businesses going forward.
Hormel last hiked its annual dividend by 12% to $0.84 per share.
This represents a 2% yield. The stock dipped into technically oversold territory in late April, but still boasts solid value in the middle of May. Hormel is an enticing add ahead of its second-quarter earnings release. It has proven that it is capable of delivering value to shareholders for decades to come.
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