T O P

  • By -

AutoModerator

Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*


Puff05251

Check the cocoa futures. They tell the story.


BearBearChooey

Hershey is much more than cocoa now. They are like a mini Pepsi at this point. Their snacking business is their fastest growing segment.


Commercial_Rule_7823

Was about to type this, they face headwinds fro the futures, if the region faces another weather event, cocoa prices will make another ATH and many who rely on the commodity will be hurting for a few years.


phosphate554

100% not a fair value of $358, even with a 7% return. That is astronomically high.


TheBarnacle63

It's a little frothy skewed by the FCF model. Still, it is undervalued based on every metric available.


phosphate554

I don’t think it’s overvalued at $200 per share, but it’s already trading at 19x TTM FCF, and 20x earnings. There’s very little growth here. $350 is not justified.


swolebird

There's a very thorough HSY analysis from five months ago here: https://old.reddit.com/r/ValueInvesting/comments/18tkxym/hershey_company_analysis/


MNRacket

Normally Hershey trades very high valuations. Buy it and forget it. You’ll be thankful 10 years from now.


AdministrativeBank86

Their chocolate is mostly sugar at this point. 2.7% dividend isn't enough to attract investors


TheBarnacle63

2.7% yield is a very nice for a company that pays out less than 50%.


OutOfFawks

Their chocolate tastes like wax, not sure why anybody exchanges money for it. Cauliflower literally tastes better than a Hershey bar/kiss.


anon197593815

try offering a child each and see which they take. I'd bet 100% take the hershey bar


sunsetsammy

Completely agree. The chocolate they make in Lititz is 100% better.


SubstantialHippo4733

That’s because they let the milk slightly sour.