Why NYSE:HSY is a Top Pick for Dividend Investors.

Our stock screener has spotted HERSHEY CO/THE (NYSE:HSY) as a good dividend stock with solid fundamentals. NYSE:HSY shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Understanding NYSE:HSY's Dividend Score

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:HSY scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.86, HSY pays a bit more dividend than its industry peers.
• Compared to an average S&P500 Dividend Yield of 2.28, HSY pays a better dividend.
• The dividend of HSY is nicely growing with an annual growth rate of 10.18%!
• HSY has been paying a dividend for at least 10 years, so it has a reliable track record.
• HSY has not decreased their dividend for at least 10 years, which is a reliable track record.

Assessing Health for NYSE:HSY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HSY has earned a 5 out of 10:

• HSY has an Altman-Z score of 4.25. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
• HSY's Altman-Z score of 4.25 is amongst the best of the industry. HSY outperforms 82.56% of its industry peers.
• The Debt to FCF ratio of HSY is 3.20, which is a good value as it means it would take HSY, 3.20 years of fcf income to pay off all of its debts.
• HSY has a better Debt to FCF ratio (3.20) than 67.44% of its industry peers.

Profitability Examination for NYSE:HSY

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:HSY, the assigned 9 is noteworthy for profitability:

• HSY has a Return On Assets of 14.05%. This is amongst the best in the industry. HSY outperforms 91.86% of its industry peers.
• The Return On Equity of HSY (42.18%) is better than 98.84% of its industry peers.
• HSY has a better Return On Invested Capital (22.53%) than 97.67% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HSY is significantly above the industry average of 8.99%.
• The 3 year average ROIC (21.99%) for HSY is below the current ROIC(22.53%), indicating increased profibility in the last year.
• HSY's Profit Margin of 16.17% is amongst the best of the industry. HSY outperforms 95.35% of its industry peers.
• HSY's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 23.04%, HSY belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 44.46%, HSY belongs to the top of the industry, outperforming 96.51% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of HSY contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.