Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend Growth Investing and chit chat. -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (1634)	12/9/2021 7:52:08 PM
From: Dave the wildpitcher	Respond to of 2146

Re: HRL I have never owned this one, but I have looked at it scores of times. The cash flow has been flat for a few years, but Value Line is predicting it will begin to grow again in 2022. If that happens, the current price for HRL might turn out to be a fair one. You said that Argus has a Hold on it. That to me is at least a "yellow flag", as they have Buy on 3/4 of the stocks they follow. Looking at their report, their main concern seems to be over the next 12 months, due to supply chain issues and inflation for input costs. They have it as a Buy long term. I agree with Argus that HRL is probably right around fair value here. Dave

To: chowder who wrote (1634)	12/10/2021 9:12:08 AM
From: OneDonatoOne	1 Recommendation Recommended By rnsmth Respond to 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.