Hershey Stock Could Produce Sweet Returns for Investors

One name you wouldn’t expect to see on this list is Hershey Co (NYSE:HSY). Most people know the company for its classic chocolate brands like “Kisses,” “Kit Kat,” and “Almond Joy”—not exactly growth businesses. But over the past few years, the company has embarked on a transformation into a snack food colossus. That has produced sweet returns for investors. Recent financial results have blown analysts’ expectations out of the water. And since we featured Hershey stock in our paid-subscription newsletter Passive Money Income last August, it has soared 54%. Yet this could just be the beginning.

Hershey has reignited its chocolate business by pushing new concepts and innovations. In recent years, management has launched dozens of new flavors, revamped packaging for 150 items, reinvented the self-check-out queue, broken into digital commerce, and gone viral on social media. Savvy online marketing campaigns have driven a double-digit increase in consumer impressions (industry lingo for the number of people that see an ad), with only a modest increase in spending. Good-old-fashioned price hikes have also boosted revenue. Last quarter, Hershey reported no dip in sales volume after announcing double-digit price hikes across most of its product portfolio. People, it seems, don’t mind coughing up an extra nickel or two for their favorite treat.

Source: Income Investor

Related Articles:
- 5 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
- 3 Exceptional Dividend Growth Stocks With Quality Financials
- Three Keys For Successful Dividend Growth Investing
- Are You Patient Enough To Be Wealthy? These 6 Dividend Stocks Will Help You Wait
- 5 Dividend Stocks With A Quick Payback