Why NYSE:HSY provides a good dividend, while having solid fundamentals.

Take a closer look at HERSHEY CO/THE (NYSE:HSY), a stock of interest to dividend investors uncovered by our stock screener. NYSE:HSY excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Analysis for NYSE:HSY

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:HSY has received a 7 out of 10:

• HSY's Dividend Yield is a higher than the industry average which is at 3.96.
• Compared to an average S&P500 Dividend Yield of 2.31, HSY pays a better dividend.
• On average, the dividend of HSY grows each year by 10.18%, which is quite nice.
• 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.

Health Assessment of NYSE:HSY

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:HSY, the assigned 5 for health provides valuable insights:

• HSY has an Altman-Z score of 4.32. This indicates that HSY is financially healthy and has little risk of bankruptcy at the moment.
• HSY has a Altman-Z score of 4.32. This is amongst the best in 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.
• With a decent Debt to FCF ratio value of 3.20, HSY is doing good in the industry, outperforming 70.93% of the companies in the same industry.

Profitability Examination for NYSE:HSY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:HSY has earned a 9 out of 10:

• HSY has a Return On Assets of 14.05%. This is amongst the best in the industry. HSY outperforms 93.02% of its industry peers.
• HSY has a better Return On Equity (42.18%) than 98.84% of its industry peers.
• The Return On Invested Capital of HSY (23.06%) is better 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 8.97%.
• Looking at the Profit Margin, with a value of 16.17%, HSY belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
• In the last couple of years the Profit Margin of HSY has grown nicely.
• HSY's Operating Margin of 23.04% is amongst the best of the industry. HSY outperforms 97.67% of its industry peers.
• HSY's Operating Margin has improved in the last couple of years.
• HSY's Gross Margin of 44.46% is amongst the best of the industry. HSY outperforms 96.51% of its industry peers.

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.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.