My 2 Favorite Stocks to Buy Right Now

In today's volatile market, finding reliable investments can be challenging. However, there are still opportunities for investors seeking stable returns and income. Two stocks that have caught my attention are Hormel Foods (NYSE: HRL) and The Hershey Company (NYSE: HSY). These consumer staples giants offer attractive yields and strong dividend track records, making them compelling investments in the current market environment.
Hormel Foods, a leading food processing company, has been facing headwinds recently. Inflation-driven price increases have been difficult to implement, and the acquisition of the Planters brand coincided with a slowdown in the nut category. Additionally, avian flu has impacted the company's turkey operations, and China's recovery from pandemic lockdowns has been slow. Despite these challenges, Hormel's strong balance sheet and track record of innovation make it a solid choice for dividend investors. The company's debt-to-equity ratio is around 0.5, and it covers its trailing interest expenses by a robust 26 times. The dividend was increased again in the first quarter of 2024, and Hormel's global expansion efforts bode well for its long-term prospects.
The Hershey Company, a iconic chocolate manufacturer, has been grappling with soaring cocoa costs. Cocoa prices have fluctuated significantly, with a recent price of around $9,330 per metric ton. Despite this challenge, Hershey's dividend has risen steadily over time, and its current yield of around 2.7% is attractive. The company's debt-to-equity ratio is roughly 1.3, and it covers its interest costs handily, with a times interest earned ratio of 16. Hershey is expanding its healthier snack business and pushing its best-known confection brands into foreign markets, providing additional growth opportunities beyond its domestic chocolate operations.

Investing in Hormel Foods and The Hershey Company allows investors to capitalize on their strong dividend track records and historically attractive yields. These consumer staples giants have faced headwinds recently, but their robust fundamentals and adaptability position them well to weather potential economic downturns. By stepping in when others are selling, investors can find attractive opportunities in these iconic companies.

In conclusion, Hormel Foods and The Hershey Company are two compelling stocks to consider in the current market environment. Their strong dividend track records, attractive yields, and adaptability make them attractive investments for income-focused portfolios. By capitalizing on undervaluations created by market perceptions and focusing on stable, income-generating investments, investors can secure steady returns and build long-term wealth.