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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (306)	9/16/2021 1:48:04 PM
From: chowder	2 Recommendations Recommended By Menominee The Beard Read Replies (2) \| Respond to of 21740

Re: Old Folk Portfolio ... Add on buy. Today I added a $2K purchase of HRL. This purchase is a "buy the dip" add on. We talk about buying the dip and when the dip comes, many people will hesitate. I see that HRL has corrected 21% off its 52 week high and a 20% correction is a good point to start or add to a position in a defensive company. HRL has a 99 Very Safe dividend rating according to Simply Safe Dividends. The company has raised the dividend for 54 consecutive years. The latest dividend increase was 5.4%. The 5 year dividend growth rate is 13%. The 20 year dividend growth rate is also 13% so it has been a reliable double digit dividend grower. The latest increase was lower than usual but I suspect that was due to the Planters acquisition and the rising commodity prices. HRL is addressing those margins going forward as shown below. It's the revenue growth that impresses me most. As long as revenues continue to grow, I expect the higher pricing going into place will help earnings going forward. Hormel Foods (NYSE: HRL): FQ3 Non-GAAP EPS of $0.39 in-line; GAAP EPS of $0.32 misses by $0.07. Revenue of $2.86B (+20.2% Y/Y) beats by $130M. Press Release "We expect to deliver record sales again in the fourth quarter, along with improving margins as additional pricing actions go into effect," Snee said. "The combination of a balanced and diversified portfolio, numerous strategic investments and the addition of the Planters® brand leaves us very optimistic about our future." Valuation HRL's current dividend yield of 2.35% is 17% above its 5-year average of 2.01%, which indicates that now could be a reasonable time to invest unless you believe that the company's outlook has weakened. In addition, HRL's forward P/E ratio of 21.5 is about in line with its 5-year average of 23.3. The market appears to be valuing the stock similarly to how it has in the past, suggesting that HRL could be fairly priced if you believe its long-term prospects remain solid. Company Profile Hormel Foods Corporation produces and markets various meat and food products to retail, foodservice, deli, and commercial customers in the United States and internationally. The company operates through four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. It offers various perishable meat products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamoles, and bacons; and shelf-stable products, such as canned luncheon meats, peanut butters, chilies, shelf-stable microwaveable meals, hashes, stews, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other products. The company also provides turkey products; nutritional food products and supplements; dessert and drink mixes; and industrial gelatin products. It sells its products under the SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Jennie-O, Café H, Herdez, Black Label, Sadler’s, Columbus, etc. brand names through sales personnel, as well as through independent brokers and distributors. The company was formerly known as Geo. A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is headquartered in Austin, Minnesota.