The Hershey Company (HSY) has managed to boost its annual dividend every year but one since 1998 and currently offers its shareholders a yield of 2.7%, asserts Ned Piplovic, income specialist and editor of DividendInvestor.
Founded in 1894 in Hershey, Pennsylvania, The Hershey Company manufactures and sells confectionery products. The company’s share price fought against moderate volatility over the past few years and is currently trading within 2% of the price level from one year ago.
The company provides its products primarily under the Hershey’s, Reese’s, Kisses, Jolly Rancher, Almond Joy, Brookside, Cadbury, Good & Plenty, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Ice Breakers, Breathsavers, Bubble Yum and Heath brands.
In addition to its confectionery operations, the Hershey Company operates an entertainment complex in Hershey that includes Hersheypark theme park, Hersheypark Stadium, Hersheypark Arena, Hershey Museum and the Giant Center arena.
After a decline in the first half of the trailing 12 months, the share price has recovered its losses and technical indicators suggest that the current uptrend might have a little more room on the upside. The 50-day moving average (MA) has been rising steadily since June 2018 and broke above the 200-day MA in late September. The 50-day MA continues to rise and is currently almost 7% above the 200-day MA.
Furthermore, the share price has remained above both moving averages since the beginning of September, with the exception of just two trading sessions when the price dipped marginally below the 50-day MA in late October 2018.
The company offers its shareholders a yield of 2.7%. While many companies were forced to reduce or eliminate their dividend distributions during the 2008 financial crisis, the Hershey company managed to avoid dividend cuts, paid a flat annual dividend in 2009 and resumed rising dividends in 2010. Since skipping the boost in 2009, the company has increased its annual dividend payout for the past eight consecutive years.
