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Strategies & Market Trends : Dividend Growth Investing and chit chat.

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To: chowder who wrote (1634)12/10/2021 9:12:08 AM
From: OneDonatoOne1 Recommendation

Recommended By
rnsmth

   of 2146
 
I can understand the analysts having HRL in a Hold (neutral) rating. Since starting with a full position purchase in 2017, when the decision to shift to a DGI portfolio was made, HRL has been priced with a premium.


As for price valuations, it seldom has presented opportunities as low as anticipated or desired. HRL is one of those higher sought after SWAN stocks that primarily performs the same regardless of economic conditions. I have found this quality company to be highly dependable to provide the safe dividend growth I seek -an Aristocrat with 54 years of growth through many recessions. The management and culture attest to the quality of the company -very important to me, actually one of the most important factors. I must also add the company is a very focused corporate citizen.


For these reasons, the company is attractive to those seeking these desirable qualities in a DGI portfolio. It is no surprise, to me anyhow, why there is a price premium. Not saying the valuations won’t resort to the mean but rather long-term sentiment has supported higher valuations for quite some time for the reasons mentioned.
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