Why Hershey and Realty Income Are Dividend Powerhouses in Troubled Times

Investors, listen up! When the world is wobbly—when inflation, interest rates, or commodity prices send stocks into a tizzy—dividends are your anchor. And right now, two companies are offering historically high yields while facing temporary headwinds that will eventually blow over. I'm talking about Hershey (HSY) and Realty Income (O). Both are dividend dynamos with sturdy balance sheets and moats so deep, you could dive into them. Let's break it down.

Hershey: A Sweet Deal in a Bitter Cocoa Market

Here's the deal: Hershey's stock is down because cocoa prices have skyrocketed, squeezing margins. First-quarter earnings plunged 32%, and full-year profits could drop 30%—ouch! But here's why this is a buying opportunity:

• Dividend Yield at 3.56%: That's a full percentage point above the sector average, and the payout ratio is a safe 65% of earnings. Even with slumping profits, Hershey's cash flow is still thick enough to keep feeding shareholders.
• Sales Growth: Despite the pain, organic sales are up 2%+ this year. People don't stop craving chocolate in a recession—especially when it's a Hershey's Kiss.
• The Trust Factor: The Hershey Trust owns a controlling stake, letting management focus on long-term value over quarterly whims.

Action Item: Buy HSY now. The stock trades at $165.86—right at analyst targets—and with cocoa prices likely to stabilize, this is a sweet spot to lock in that 3.56% yield.

Realty Income: The Monthly Dividend Machine

Realty Income is the “Dividend King” of REITs, paying monthly dividends for 60+ years. But rising interest rates have crimped real estate deals, causing shares to sag. Here's why this is a steal:

• 5.7% Yield: That's a 10-year high! Realty Income's dividend is rock-solid, backed by net lease contracts with rock-steady tenants (think Walmart, 7-Eleven).
• Balance Sheet Muscle: Investment-grade rated with $4.5 billion in liquidity. When rates eventually drop, Realty Income will pounce on discounted properties to fuel growth.
• Cyclical Recovery: Interest rates are a pendulum—they'll swing back down. When they do, Realty Income's stock will soar, just like it did after the 2008 crisis.

Action Item: This is a buy-and-hold forever stock. The 5.7% yield gives you a steady paycheck while you wait for the REIT rebound.

Why Now? The Case for Immediate Action

Both HSY and O are misunderstood by the market. Cocoa prices will normalize (they always do), and interest rates will retreat (they always do). Meanwhile, you're getting fat dividends to cushion the wait.

• Hershey's Payout: $5.48 annually per share—up from $4.16 in 2023. That's real growth in a shrinking environment.
• Realty Income's Consistency: 622 properties, 99% leased, and a 100% dividend growth streak since 1994.

The Bottom Line

Investors, this is not a gamble. It's a value play on two companies that dominate their industries and pay you handsomely to wait out the storm.

• Hershey: Buy now at $165.86 for a 3.56% yield. Analysts see $200 by .
• Realty Income: Grab the 5.7% yield while you can.

These aren't just stocks—they're income engines with lifelines that stretch decades. Don't let short-term noise scare you off. Act now.

Disclosure: I own both HSY and O in my portfolio. And I'm not selling.