This is a question and thread to talk about Hormel Foods stock, my question is simple. How much of this stock would you invest in? With the high dividends and the positive 4 years (this year its down from a year ago) but shows its on the right direction again! With the nickname dividend kings the dividend alone is a great buy. But the questions is would you buy, hold or sell. Question is how much money would you throw into this stock
It might be SPAM.
https://seekingalpha.com/article/4402550-hormel-foods-why-largest-position-and-i-just-bought
Hormel is unique in that it offers such strong returns -- it crushes the market over any longer-term timeframe. And it manages to do so while having minimal downside risk. The company has no net debt, so its stock is immune to all short-term financial crises or liquidity shocks. Hormel is also able to (and often does) make acquisitions on good terms since it always has cash on hand and can close deals quickly without needing to raise funds.
The company's products are not at risk of technological disruption nor significant changes in consumer demand. That may seem true of all consumer staples companies, but it's actually not. Many firms have stuck to old brands that are no longer in fashion or on top of nutritional trends. Many dated product categories like cereal, soda, and crackers are in seemingly slow but irreversible long-term decline.
Hormel's management team's central mission is to avoid that fate. The company prides itself on generating 15% of its revenues from new products launched over the past five years. It invests heavily (by food company standards) in R&D and is always rolling out line extensions and new formats for existing products (it's taken huge share in the emerging meat and dairy snacks category, for example, by figuring out that convenience store shoppers wanted an alternative to usual junk foods long before the rest of the market woke up to the nascent protein revolution).
The company also focuses on being agnostic -- it wants to sell you whatever protein you want. If you want almond butter and plant protein-based "meat", it's happy to sell that. If you want organic high-end deli meats, it is now a leader in that. It just bought a major barbeque business. And they were first to jump into turkey on a national level almost two decades ago, helping to bolster turkey's popularity as a leaner alternative to traditional offerings. Hormel anticipates what consumers will want five years from now and prepares accordingly.
Yes, Hormel is known for SPAM. Many people instinctively wince when they think about that product. But, you're probably not the target audience for it. There's a huge regional community within Asians and Latinos that like canned meat and SPAM in particular. Just as Hormel has bought specialty nut butters, organic meats, and the na
... keep reading on reddit ➡It could be SPAM (Credit to u/Hayek_Hiker )
And who doesn't like the kind with the gravy?
It could be SPAM.
