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Hershey Shareholders Thrive on 346 Straight Dividend Payouts

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346th consecutive regular dividend

On May 4, Hershey (HSY) announced that its board of directors approved quarterly dividends of $0.58 on the common stock and $0.53 on the Class B common stock. The dividend was paid on June 15, 2016, to shareholders of record on May 25, 2016. This dividend marks the 346th consecutive regular dividend on the common stock and the 127th consecutive regular dividend on the class B common stock.

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Returns to shareholders to date

Hershey paid $122 million in total to shareholders through dividends in 1Q16. The company also repurchased $304 million of outstanding shares. Out of the $250 million authorization approved in February 2015, the company repurchased $20 million. Out of the $500 million authorization approved in January 2016, it repurchased $284 million.

Hershey has a dividend yield of 2.1% as of July 20, 2016. The company’s management has increased dividends at a CAGR (compounded annual growth rate) of 12.5% over the last five years.

Peer dividend yield

Hershey’s peers in the snack foods industry include Mondelez (MDLZ), J.M. Smucker (SJM), and Kellogg (K). As of July 20, their dividend yields are as follows:

  • Mondelez’s dividend yield is 1.5%.
  • Smucker’s dividend yield is 1.9%.
  • Kellogg’s dividend yield is 2.3%.

The iShares S&P Global Consumer Staples ETF (KXI) invests 0.44% of its portfolio in Hershey. The iShares Morningstar Mid Core ETF (JKG) invests 0.95% of its holdings in Hershey.

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