Consumer staples as a sector had a good run during the uncertainty-filled year of 2020. As the pandemic wreaked havoc on the global economy, food companies worldwide did better than many other sectors. The large food businesses tend to be somewhat recession-resistant as food will continue to sell no matter what Black Swan event hits the world. That theme played out with Hormel Foods, a giant in the food processing industry. Since the vaccination drive began, other sectors have started to outperform. However, if you are an investor looking for the best food company stocks to buy now, then Hormel Foods is one stock you may want to look at.
What Exactly Is Hormel Foods’ Business?
Hormel Foods is based in Austin, Minnesota, and was founded in 1891 by George Hormel. The company started out as a seller and packager of sausage, ham, spam, pork, chicken, lamb, and beef products. The company then widened its offerings to include other refrigerated and packaged foods as well. Today, Hormel Foods is a $25 billion market cap giant in the food industry. The company’s core business is still processing meat products, but it now has brands like Applegate, SPAM, and Skippy under its belt. Hormel Foods does business in 80 countries. Hormel Foods is also part of the exclusive Dividend Kings club because it has raised its dividends every year for 55 consecutive years. For dividend investors, Hormel Foods may be considered to be among the bluest of blue chips. If you are looking to buy food company stocks, then Hormel Foods is a potential candidate.
Best Food Company Stocks To Buy Now
Hormel Foods’ stock closed at $47.8 on 5th April 2021. The stock was almost flat over the preceding 30 days and even on the 6-month and 1-year time frame. The dividend yield at the close of day on 5th April was 2.05%. Over three years, the stock is up 36%.