HERSHEY, Pa. - The Hershey Company (NYSE:HSY) has declared its latest round of quarterly dividends, continuing its long-standing tradition of regular payouts to shareholders. The announcement made on Wednesday confirmed that the renowned confectionery and food giant would disburse dividends of $1.370 per share for its Common Stock and $1.245 per share for its Class B Common Stock.
These dividends are scheduled for payment on December 16, 2024, to stockholders who are on record as of November 18, 2024. This marks the 379th consecutive regular dividend on the Common Stock and the 160th consecutive regular dividend on the Class B Common Stock, showcasing Hershey's consistent return to its investors.
The declaration of these dividends reflects the company's commitment to providing shareholder value and underscores its financial stability. Hershey's ability to maintain such a long sequence of regular dividends is indicative of its operational success and strategic financial management.
Investors and market watchers often view consistent dividend payments as a sign of a company's strong financial health and its management's confidence in future earnings. Hershey's latest dividend announcement is likely to be well-received by the investor community, considering the company's history of regular and reliable dividend payments.
The information regarding the dividend declaration is based on a press release statement from The Hershey Company. As with all investments, shareholders consider a range of factors, including dividend payments, when assessing the value and potential of their holdings. Hershey's continued practice of disbursing dividends may be a critical aspect for current and prospective investors.
The company's stock is traded on the New York Stock Exchange under the ticker symbol HSY, where investors can track its performance in relation to market movements and company-specific developments.
In other recent news, Hershey Co reported third-quarter earnings and revenue that fell short of analyst expectations. The company disclosed adjusted earnings per share of $2.34, missing the consensus estimate of $2.56. Additionally, revenue declined 1.4% year over year to $2.99 billion, which was below analysts' projections of $3.08 billion. Hershey attributed the weaker-than-expected results to high cocoa prices and a challenging consumer environment, which led to a decrease in organic, constant currency net sales by 1.0%.
Gross margin also contracted to 40.3%, influenced by higher commodity costs, unfavorable input cost timing, and fixed cost deleverage. For the full year, Hershey revised its net sales growth forecast to 6-7%, down from its previous outlook of 8%, while maintaining its adjusted EPS growth forecast of 11-12%. In light of recent developments, Hershey's President and CEO, Michele Buck, stated that the company's priorities are to drive top-line and market share growth. This strategy includes winning in-store with key customers, expanding the chocolate portfolio, accelerating sweets, and maximizing seasonal strength.
InvestingPro Insights
The Hershey Company's recent dividend declaration aligns with its impressive track record of shareholder returns. According to InvestingPro data, Hershey boasts a dividend yield of 3.1% and has maintained dividend payments for an impressive 54 consecutive years. This consistency is further highlighted by an InvestingPro Tip noting that Hershey has raised its dividend for 14 consecutive years, underscoring the company's commitment to increasing shareholder value over time.
Despite recent market challenges, with the stock trading near its 52-week low, Hershey's financial fundamentals remain solid. The company's revenue for the last twelve months as of Q2 2024 stood at $11.01 billion, with a gross profit margin of 45.43%. This robust profitability is complemented by an operating income margin of 23.43%, indicating efficient operations.
An additional InvestingPro Tip suggests that Hershey operates with a moderate level of debt, which is crucial for maintaining its dividend policy. This financial prudence, combined with the company's strong cash flows that can sufficiently cover interest payments, provides a stable foundation for continued dividend distributions.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips on Hershey's stock, providing a deeper understanding of the company's financial health and market position.
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