Hormel Foods Corporation (HRL) ranked second in the March edition of my 10 Dividend Growth Stocks series of articles on Seeking Alpha. In fact, the stock has made the top ten list six times in the past year.
The last time I looked at HRL, the stock was trading at $38.46 per share and yielding 1.51%. At the time, my fair value estimate was $34 per share, so I decided to stay on the sidelines and wait for a more favorable entry point.
HRL now trades at $34.21 per share and yields 1.99%. In this article, I make the case for adding HRL to my portfolio of dividend growth stocks.
About Hormel Foods
HRL is a multinational manufacturer and marketer of consumer-branded food and meat products. The company sells its products through sales personnel, as well as through independent brokers and distributors. Customers include retailers, hospitals, nursing homes and marketers of nutritional products. HRL was founded in 1891 and is based in Austin, Minnesota.
The stock is a Dividend Champion with a track record of 51 consecutive years of dividend increases and a 10-year dividend growth rate of 15.3%. HRL pays quarterly dividends of 17.0¢ per share in the months of February, May, August, and November.
To see my stock analysis and to learn why I'm looking to buy HRL, please read this article at Seeking Alpha.
Feel free to comment on this article either here or at Seeking Alpha.