Is Hershey a Millionaire-Maker Stock?

The Hershey Company, a beloved name in the confectionery industry, has been a staple in American households for over a century. With iconic brands like Hershey's, Reese's, and Kit Kat, the company has built a strong reputation and a loyal customer base. But can Hershey's stock make you a millionaire? Let's explore the factors that contribute to Hershey's long-term stock performance and determine if it's a millionaire-maker stock.

Hershey's brand recognition and product portfolio are key drivers of its stock performance. The company's iconic brands are widely recognized and beloved by consumers, providing a stable foundation for sales and earnings growth. Additionally, Hershey's expansive product range, including chocolate, non-chocolate confectionery, gum, and mint refreshment products, as well as pantry items and snack items, helps the company weather economic downturns and capitalize on emerging trends. This diversification, coupled with Hershey's strong brand equity, positions the company well for long-term success.



Hershey's ability to manage input costs, particularly cocoa, is crucial to its profitability and stock performance. Despite cocoa prices tripling from historical averages over the last three years, Hershey has grown its earnings per share by 28% during that period. This resilience highlights the company's pricing power and cost management strategies, which have enabled it to maintain profitability even in the face of significant input cost increases. As a result, Hershey's stock has performed well, with a 15% dividend growth this year and a current yield of 3%. Its strong brand recognition and ability to navigate input cost challenges make Hershey an attractive investment option for long-term investors.



Hershey's strategic acquisitions and partnerships have significantly contributed to its long-term growth and stock performance. The company's purchase of Amplify Snack Brands in 2017 expanded its portfolio to include popular snack brands like SkinnyPop and Tyrrells, diversifying its offerings and appealing to health-conscious consumers. This acquisition, valued at $1.6 billion, has proven successful, with SkinnyPop alone generating over $400 million in revenue in 2021. Additionally, Hershey's partnership with Mondelez International in 2018 allowed it to enter the fast-growing e-commerce market, further boosting its sales and market reach. These strategic moves have not only expanded Hershey's product range but also opened up new revenue streams, driving its stock price up by over 150% since 2017.



Hershey's dividend payout ratio and growth rate are impressive compared to its peers in the consumer staples sector. With a payout ratio of 3.0% and a 5-year dividend growth rate of 10.2%, Hershey offers a stable and growing income stream for investors. This is significantly higher than the sector average payout ratio of 2.5% and growth rate of 7.5%. Additionally, Hershey's dividend yield of 3.2% is higher than the sector average of 2.8%. This makes Hershey an attractive option for income-oriented investors seeking a stable and growing dividend.



In conclusion, Hershey's strong brand recognition, diverse product portfolio, ability to manage input costs, strategic acquisitions, and impressive dividend performance make it a potential millionaire-maker stock. While past performance is not indicative of future results, Hershey's track record and fundamentals suggest that it is well-positioned for long-term success. As always, it's essential to conduct thorough research and consider your risk tolerance before making any investment decisions.