05-28-2015, 08:34 PM
I like HSY too but I cannot seem to find the chutzpah to buy some as it seems perennially overpriced. Maybe that will be the norm for a long time into the future and P/E be damned. Activist investors nor Buffet will be playing around with the stock or company since the Hershey Trust holds controlling interest in the company and they will NOT allow the board or senior management to mess with their control. Because of all this, I've never dug seriously into HSY but maybe I should. Analysts estimates for EPS growth is in the high single digits and the payout ratio stays around 50% so there's wiggle room there should things sour for a quarter or two.
You're right Eric, HRL is in a similar situation. It was on my watchlist for a very long time and finally I just moved on since it was never cheap enough for me to initiate a position. I believe a good recession is the only time you get a chance to get shares at a value but the yield is still pretty low then too.
You're right Eric, HRL is in a similar situation. It was on my watchlist for a very long time and finally I just moved on since it was never cheap enough for me to initiate a position. I believe a good recession is the only time you get a chance to get shares at a value but the yield is still pretty low then too.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan