I added to my position in Hormel (HRL) today. As was the case with SBUX earlier this month, HRL’s price dropped recently with the release of its latest earnings. With the drop, I decided to add some shares and average down. HRL does not have a high yield, but with the announcement, the yield has made its way over 2%. Hormel is a Dividend King, having increased their annual dividend for more than 50 consecutive years. You can’t find many companies with a track record like that. I estimate HRL can grow earnings long-term at 8% a year. Couple that with the 2% dividend, and I’m looking for a 10% long-term annual return. We’ll see how it plays out. Here are the transaction details…
HRL
On 8/28/17, I purchased 50 additional shares at $31.00/sh, for a total of $1,550.00.
This position is now at 201.486 shares, with an average cost of $33.81.
This purchase results in an additional $34.00 in annual forward dividend income.
Is HRL reaching a price point where you’d consider it? Is there a competitor in the Consumer Staples sector you like more at this time? Looking forward to your feedback…
Interesting buy, its been on my watchlist but so far I have not pulled the trigger.
Thanks for sharing!
Hi Mr. Robot,
Appreciate you taking the time to comment. This is my 2nd purchase of HRL, with the 1st being back in March, before I started the blog. I think HRL has some short-term pain to overcome, but I think they’ll do well in the long-term. In the meantime, I get to collect that dividend!
Nice pick up. HRL is one of my Sept. considerations and seeing it yield over 2% is historically high for the stock. Nothing wrong with picking up a quality name like HRL when others are selling. Thanks for sharing.