Analysis – The Hershey Company Increases Dividend by 9%

HSY

The Hershey Company announced a regular quarterly dividend of $0.583, a 9 percent increase from the prior rate of $0.535 per share. The dividend will be paid at the new higher rate on September 15, 2015, to shareholders of record at close of business on August 25, 2015.

Date Quarterly Dividend
8/25/2015 0.583
5/21/2015 0.535
2/23/2015 0.535
11/21/2014 0.535
8/21/2014 0.535
5/21/2014 0.485
2/21/2014 0.485
11/21/2013 0.485
8/21/2013 0.485
5/22/2013 0.42
2/21/2013 0.42
11/20/2012 0.42
8/22/2012 0.38
5/23/2012 0.38
2/22/2012 0.38
11/22/2011 0.345
8/23/2011 0.345
5/23/2011 0.345
2/23/2011 0.345
11/22/2010 0.32
8/23/2010 0.32
5/21/2010 0.32
2/23/2010 0.32

Analysis of Valuation of Hershey. (Symbol HSY).

Hershey is trading above its average price/sale (P/S) range.  Hershey is trading at its average historical dividend yield.   

Price 8/10/15 % Yield 5 Year Div. Growth Rate  SPS    2015 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$91.81 2.4% 10% 35.10 3.09 1.30 3.35 2.78 1.69

Hershey Dividend Yield Chart (Click to enlarge)

HSY2

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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