Hershey to Trade Ex-Dividend in the Next 4 Days
The Hershey Company is set to trade ex-dividend in the next four days. This means that if investors purchase Hershey’s shares on or after the 16th of February, they will not be eligible to receive the upcoming dividend payment on the 15th of March. The ex-dividend date is one business day before the company’s record date, which determines which shareholders are entitled to receive a dividend. It is crucial for investors to settle any stock transactions before the record date to be eligible for the dividend.
Hershey’s Next Dividend Payment and Trailing Yield
Hershey’s next dividend payment will be $1.37 per share. Last year, the company paid a total of $4.77 in dividends to shareholders. Based on the current share price of $195.45, Hershey has a trailing yield of 2.4%. Investors appreciate receiving dividends, but it is also important to ensure that the company can sustain its dividend payments without compromising its financial stability.
Earnings and Dividends Growth
Sustainable earnings growth is an important factor when assessing dividend prospects. Companies with increasing earnings are more likely to raise their dividends. Hershey’s earnings per share have grown at a rate of 10% per year over the past five years, indicating a positive trend. The company also retains a majority of its earnings within the business, which is favorable for dividend growth. Over the past decade, Hershey has raised its dividend by approximately 11% per year on average, highlighting its commitment to rewarding shareholders.
The Bottom Line for Hershey’s Dividend Prospects
Hershey shows promise as a dividend stock, considering its rapid earnings and dividend growth, as well as its prudent payout ratio. The company’s focus on reinvesting profits into the business while maintaining a low fraction of earnings for dividend payments is a desirable combination for long-term investors. While risks should always be considered, Hershey’s dividend potential makes it worth further investigation.
Valuation and Comprehensive Analysis
When evaluating a stock, it is important to consider its valuation. Simply Wall St provides comprehensive analysis that includes fair value estimates, risks and warnings, dividends, insider transactions, and financial health. This analysis can help determine whether a stock like Hershey is potentially over or undervalued. It is important to note that the analysis provided does not constitute financial advice and should be taken into consideration alongside individual objectives and financial situations.
Conclusion and Feedback
Hershey’s potential as a dividend stock, accompanied by its steady earnings and dividend growth, makes it an appealing choice for investors. However, it is always important to stay updated on the risks associated with any investment. Simply Wall St aims to provide valuable analysis driven by fundamental data, but this analysis may not include the latest price-sensitive company announcements or qualitative material. Investors are encouraged to provide feedback on articles to ensure continuous improvement in content quality.
Analyst comment
Positive news: Hershey is set to trade ex-dividend in the next four days. The company has a history of increasing earnings and dividend growth, making it a promising dividend stock.
Market impact: The news of Hershey trading ex-dividend may lead to increased trading activity as investors rush to purchase shares before the ex-dividend date. This could potentially drive up the stock price in the short term. However, investors should also consider the company’s financial stability and ability to sustain dividend payments in the long term.
