Hershey’s 347th consecutive regular dividend
On July 28, 2016, Hershey (HSY) declared its 347th consecutive regular dividend on its common stock and its 128th consecutive regular dividend on its Class B common stock. The company’s board of directors approved quarterly dividends of ~$0.62 on its common stock and ~$0.56 on its Class B common stock. That’s an increase of 6%. The dividend will be paid on September 15, 2016, to shareholders of record on August 25, 2016.
Returns to shareholders to date
Hershey paid $121 million to shareholders through dividends in 2Q16. The company also repurchased $117 million of outstanding shares. Of the $500 million authorization approved in January 2016, $100 million is remaining on this authorization. The company also repurchased $32 million of common shares to replace shares issued related to the exercise of stock options.
Hershey has a dividend yield of 2.2% as of July 29, 2016. Management has increased dividends at a CAGR (compound annual growth rate) of 12.5% over the last five years.
Peer dividend yield
- Mondelez: 1.7%
- JM Smucker: 1.9%
- Kellogg: 2.4%