Meet the Dividend King That's Down 50% and Yields More Than It Has in Years
2026-10-07 08:30
•Todd Shriber •The Motley Fool
••••••• • Axe Cap view
When a Dividend King Falls 50%, Should You Take Notice?
Hormel Foods offers a rare high dividend yield amid a lengthy share price decline, raising the question of value versus risk.
Hormel Foods, a U.S. Dividend King with 61 straight years of increased payouts, has lost half its value over five years. The culprit? A big shift toward healthier eating that weighs on legacy food brands seen as less trendy. Yet, the stock yields 5.7%, close to its highest in years, signaling income investors might want to look. Hormel’s Brakebush acquisition is a smart bet on growing protein demand, and the rise of GLP-1 drugs could reshape consumer habits in ways that either erode or boost its market. The reality is, Hormel’s turnaround depends on whether it can truly innovate beyond its traditional staples. For South African investors, this is more of a watch-and-wait story unless your portfolio includes a meaningful USD/ZAR hedge, given currency swings could either cushion or amplify your returns. this is just our opinion and not financial advice
Avoid buying Hormel here but keep an eye on it for signs of brand revitalization; consider USD/ZAR as the primary way to express cautious exposure. If you want yield, local banks like Standard Bank offer more stability with less currency risk.
- HRL
- USD/ZAR
- Standard Bank
- Consumer shift away from processed foods persists
- USD/ZAR volatility impacts returns for South African investors
5/10
Hormel Foods stock has declined 50.5% over five years due to shifting consumer preferences toward healthier options, but now offers a near-record 5.7% dividend yield. As a Dividend King with 61 years of consecutive dividend increases, the company is viewed by some analysts as undervalued and a potential rebound candidate, particularly given its recent acquisition of Brakebush Brothers chicken company and strong protein consumption trends.
Our take is based on reporting first published by The Motley Fool.
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