Hershey Company (The) (HSY) DIvidends Date & History

Key Takeaways

• The Hershey Company offers a current dividend yield of approximately 3%, paid quarterly at $1.452 per share.
• Recent dividend increase of 6% to $1.452, marking the 15th consecutive year of annual raises.
• Payout ratio exceeds 120% of earnings due to recent cost pressures, but free cash flow (FCF, cash generated after capital expenditures) covers dividends at around 64%.
• Five-year dividend growth rate averages 12%, reflecting a commitment to shareholders.
• Long history of payments, with the recent declaration being the 384th consecutive quarterly dividend.
• Suitable for income investors seeking consumer staples stability amid market volatility.

Dividend Overview

The Hershey Company (HSY), a leading confectionery giant, maintains a reliable quarterly dividend policy. The current annualized dividend stands at $5.808 per share, delivering a yield of about 3% based on recent stock prices. The most recent quarterly payout of $1.452 per share was declared on February 4, 2026, with an ex-dividend date of February 17, 2026, and payment on March 16, 2026. This represents a 6% increase from the prior quarter's $1.37. Hershey is viewed as a dividend growth stock in the consumer staples sector, prioritizing steady income for investors through consistent raises despite commodity cost fluctuations like cocoa prices. Its profile appeals to those seeking moderate yield with potential for appreciation.

Dividend History and Growth

Hershey has a storied dividend legacy, with the February 2026 declaration marking its 384th consecutive quarterly common stock dividend, spanning over 96 years. The company has raised its payout for 15 consecutive years, with a five-year compound annual growth rate (CAGR) of approximately 12% and a similar 10-year trend. Annual dividends have grown from $3.154 in 2020 to $5.808 in 2026. This track record underscores a long-term strategy of returning capital to shareholders, even amid challenges like rising input costs. Hershey's board reviews dividends quarterly, balancing growth investments with shareholder returns.

Dividend Sustainability and Payout Ratio

Hershey's dividend payout ratio currently hovers around 123-128% of trailing twelve-month earnings per share (EPS), elevated due to margin pressures from high cocoa prices impacting profitability. However, sustainability is bolstered by robust free cash flow, with an FCF dividend payout ratio of about 64%, indicating ample coverage. The company's debt-to-equity ratio of approximately 1.0 remains manageable for its sector, supported by $1.75 billion in recent annual FCF. Strong brand moats and pricing power in essentials like chocolate position Hershey to navigate headwinds, maintaining dividend reliability without cuts.

Dividend Compared to Industry Peers

In the packaged food and confectionery space, Hershey's 3% yield is competitive. Peer MDLZ (Mondelez) offers around 3.4%, while KHC (Kraft Heinz) yields higher at over 4.5% amid slower growth. CAG (Conagra) and FLO (Flowers Foods) provide yields near 4-5%, but with varying growth profiles. Hershey stands out for its dividend growth consistency versus higher-yield peers facing payout concerns, making it an average-to-attractive option in consumer staples.

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Is This Stock Attractive for Dividend Investors?

The Hershey Company appeals to conservative income investors favoring consumer staples for their defensive qualities and pricing power. Its 3% yield, backed by strong FCF despite a high earnings payout ratio, suits those prioritizing stability over ultra-high yields. Dividend growth enthusiasts may appreciate the 15-year raise streak and 12% five-year CAGR, though recent commodity pressures warrant monitoring. Long-term holders benefit from Hershey's iconic brands and market dominance, offering resilience in downturns. However, value-oriented investors might pause at the elevated valuation and payout metrics, preferring peers with lower ratios. Overall, it fits portfolios seeking reliable quarterly income with moderate growth potential, balanced against sector risks like input costs.

Disclaimer

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