Hormel Should Be Able to Continue to Grow Its Dividend Supported by Its Portfolio of Brands

Hormel Foods has long been on US shelves, with popular meat-centric brands like Jennie-O, Spam, Dinty Moore, and various Hormel-branded goods. These brands tend to hold number one or two share in their categories. To keep pace with evolving trends, Hormel has expanded its focus through acquisitions of non-meat protein brands like Skippy and Planters and branded meat products like Applegate. It has also entered ethnic and emerging food with Wholly Guacamole, Herdez, and Happy Little Plants. While Hormel has reduced its meat commodity exposure, industry structure forces it to remain highly exposed to commodity turkey. Even as its branded businesses have showed stability, turkey volatility has led to swings in profitability.