Updated on July 9th, 2025 by Felix Martinez
The Dividend Kings are the best stocks in the market for returning cash to shareholders over time. To be included on the list, a company must have increased its per-share dividend for at least 50 consecutive years.
Given this extremely high bar, only businesses that can demonstrate stability across various economic conditions make the cut.
Indeed, just 55 companies qualify as Dividend Kings. You can see all 55 Dividend Kings here.
You can also download an Excel spreadsheet with the full list of Dividend Kings (plus metrics that matter, such as price-to-earnings ratios and dividend yields) by clicking on the link below:
Hormel Foods Corporation (HRL) is a processed food manufacturer that competes in several grocery categories. The company was founded 132 years ago and has managed to increase its dividend for the past 59 years.
Hormel is a famously recession-resistant company that performed relatively well during the coronavirus pandemic.
In this article, we’ll examine Hormel’s fundamentals to assess the attractiveness of the stock.
Business Overview
Hormel was founded in 1891. In the years since, it has grown through organic expansion and an extensive history of acquisitions and divestitures.
Today, the company produces over $12 billion in annual revenue, with its core products remaining true to its history as a meat processor.
Hormel’s reach is extensive, with distribution in over 80 countries worldwide.
Hormel has a staggering 40 product categories, and its brands are first or second in terms of market share.
The company has focused on building scale and brand recognition in all its categories, which has paid off over time. This dominance is difficult to find in any industry, but Hormel has managed to do it.
Hormel’s products are arranged in four categories: Refrigerated Foods, Center Store Foods, Jennie-O Turkey, and International.
The Jennie-O brand sells turkey products, with revenue split equally between grocery and food service.
Growth Prospects
We currently expect Hormel to produce 6% annual earnings-per-share growth for the foreseeable future as it continues to remake its portfolio to accelerate growth.
Hormel is executing six strategic priorities to drive growth. Each priority targets specific brands within the company. Sales growth should be the primary driver of earnings-per-share expansion. Given the current inflationary pressures, margins will also be a key focus in 2025 and beyond.
In addition, Hormel has been busy remaking its portfolio through acquisitions and divestitures over the past few years.
For example, in 2021, Hormel announced the acquisition of the Planters snack nuts business from Kraft-Heinz (KHC) for $3.35 billion, which has boosted Hormel’s growth.
Source: Investor Presentation
Competitive Advantages & Recession Performance
Hormel’s competitive advantage is its roughly 40 products that are #1 or #2 in terms of market share in their respective categories. It competes very well in categories with stable demand and repeat purchases, as it only sells consumables.
Hormel’s distribution network, which delivers products to more than 80 countries, means its revenue stream is very well diversified.
Hormel’s recession record is fairly robust, having grown its earnings during and after the Great Recession:
- 2007 earnings-per-share of $0.54
- 2008 earnings-per-share of $0.52 (3.7% decrease)
- 2009 earnings-per-share of $0.63 (21.1% increase)
- 2010 earnings-per-share of $0.76 (20.6% increase)
Hormel experienced a slight decline during the initial downturn of the Great Recession but posted significant earnings growth in 2009 and 2010.
The coronavirus pandemic was similar, as Hormel reaped the benefits of pantry stocking worldwide.
Therefore, Hormel remains a good choice for investors seeking defensive stocks for their dividend portfolio.
Valuation & Expected Returns
We expect Hormel to generate adjusted earnings per share of $1.60 for the current year. Therefore, the stock trades at a price-to-earnings ratio of 19.4, which is below our fair value P/E of 23.0.
That works out to be a modest tailwind to total returns over the next five years as the stock remains expensive.
If the P/E declines from 19.4 to 23.0 over the next five years, annual shareholder returns will increase by 3.5% per year.
Additionally, expected earnings-per-share growth of 6% and a 3.7% dividend yield are expected to contribute to shareholder returns.
Overall, we estimate an annual return of 13.2% for Hormel stock. This is a sufficient return to maintain a buy rating on Hormel, particularly given the company’s consistent dividend growth.
Indeed, the dividend is very safe, as Hormel has a projected dividend payout ratio of 73% for 2025. Therefore, the company should not have much trouble increasing the dividend each year going forward.
Final Thoughts
Hormel’s earnings stability and dividend growth track record are difficult to match. The company has proven it can survive and thrive in various conditions, including perhaps the most challenging conditions the economy has ever faced with the coronavirus crisis.
Thus, the stock appears to be undervalued right now. We currently rate the stock as a buy for dividend growth investors.
The following articles contain stocks with very long dividend or corporate histories, ripe for selection for dividend growth investors:
- The High Yield Dividend Aristocrats List is comprised of the 20 Dividend Aristocrats with the highest current yields.
- The Dividend Achievers List is comprised of ~400 stocks with 10+ years of consecutive dividend increases.
- The High Yield Dividend Kings List is comprised of the 20 Dividend Kings with the highest current yields.
- The Blue Chip Stocks List: stocks that qualify as Dividend Achievers, Dividend Aristocrats, and/or Dividend Kings
- The High Dividend Stocks List: stocks that appeal to investors interested in the highest yields of 5% or more.
- The Monthly Dividend Stocks List: stocks that pay dividends every month, for 12 dividend payments per year.
- The Dividend Champions List: stocks that have increased their dividends for 25+ consecutive years.
Note: Not all Dividend Champions are Dividend Aristocrats because Dividend Aristocrats have additional requirements like being in The S&P 500. - The Dividend Contenders List: 10-24 consecutive years of dividend increases.
- The Dividend Challengers List: 5-9 consecutive years of dividend increases.
- The Best DRIP Stocks: The top 15 Dividend Aristocrats with no-fee dividend reinvestment plans.
- The High ROIC Stocks List: The top 10 stocks with high returns on invested capital.
- The High Beta Stocks List: The 100 stocks in the S&P 500 Index with the highest beta.
- The Low Beta Stocks List: The 100 stocks in the S&P 500 Index with the lowest beta
- The Complete List of Russell 2000 Stocks
- The Complete List of NASDAQ-100 Stocks