The Hershey Company (NYSE:HSY) Stock Overview: All You Need to Know About Hershey’s

From sweet confections like chocolate bars to savoury treats like pretzels, The Hershey Company has solidified its global reputation as a powerhouse in the world of snacks. Over its storied history, the company has seamlessly transitioned from crafting iconic chocolates to curating a comprehensive selection that caters to various flavour cravings. 

Here’s a handy guide to Hershey, where we cover everything from it’s history, to current stock price, dividend yield and more.

History ^[1]

Hershey’s history begins with Milton S Hershey and his caramel business in the 1880s when he established the Lancaster Caramel Company in Lancaster, Pennsylvania. During this time, chocolate was only used as a coating for his caramels. 

This changed after seeing German-made chocolate machinery at the World’s Columbian Exposition in 1983. Inspired by this encounter, Hershey decided to go into the world of chocolate. In 1984, he established The Hershey chocolate company, where he then later sold their first candy bar in 1900. Hershey’s method of mass production made milk chocolate, a treat available only to the rich — an affordable luxury at that time. 

In 1907, The Hershey Company manufactured its first iconic chocolate Kisses. Initially wrapped by hand, the introduction of advanced machinery in 1921 streamlined production, giving rise to the distinctive foil wrapper adorned with the signature paper plume. Now, more than 70 million Hershey’s Kisses chocolates are produced each day. 

Hershey’s footprint broadened through its acquisition of confectionery businesses in 1960 with the H.B. Reese Candy Company, followed by the acquisition of LEAF.Inc in 1996 whose portfolio included household favourites like Jolly Rancher, Whoppers, and Milk Duds. The company’s most recent acquisition, in 2021, welcomed Lily’s Sweets into its fold.

Hershey’s commitment to global cocoa sustainability can be seen through its founding role in the World Cocoa Foundation in 2000, dedicated to enhancing cocoa farming practices in West Africa.

In more recent times, The Hershey Company’s achievements have garnered recognition. For seven consecutive years, the company was named to the 2019 Dow Jones Sustainability World Index and securing its place in the 2021 The Civic for the ninth year in a row. 

Hershey’s Share Price 2023 ^[2]

Here is how The Hershey Company has been performing on the stock market for the year 2023: 

In 2023, Hershey’s share price experienced fluctuations on an upwards trend, hitting an all-time high of $276.35 on 1 May. It has since been on a decline, plummeting to 213.85 on 23 August. 

Hershey Stock Price History (Annual)
Year	Average Stock Price	Year Open	Year High	Year Low	Year Close	Annual % Change
2022	214.1134	187.1789	238.0183	187.1789	228.4112	21.86%
2021	162.5753	143.3161	187.4308	137.8171	187.4308	29.55%
2020	134.2567	133.7993	150.3123	104.0652	144.6742	5.91%
2019	123.4156	95.8531	149.2213	94.8167	136.6061	40.20%
2018	89.9547	99.1134	100.8373	79.6948	97.4349	-2.91%
2017	94.7989	89.7596	102.0662	89.3536	100.3511	12.33%
2016	82.7009	74.1514	97.2218	70.2159	89.3363	18.75%
2015	78.7848	85.3279	91.1448	69.9588	75.2301	-12.02%
2014	79.3437	77.3004	87.7386	71.7077	85.5089	9.14%
2013	71.6187	58.7014	80.8956	58.0538	78.3480	37.37%

When was Hershey listed ^[3] 

In 1927, the Hershey Chocolate Co. went through a reorganisation and became a publicly traded company as the Hershey Chocolate Corporation – making its first public listing on the New York Stock Exchange.

About the stock: Hershey

Hershey Trading Information

• Primary exchange: NYSE
• Hershey Stock Symbol: HSY
• Country: U.S.
• Currency: USD
• Trading hours:
  • Main: 9.30am to 4pm ET, Mon to Fri
  • Pre-market: 4am to 9.30am
  • After-market: 4pm to 8pm

Business Segment ^[4]

Sector	Industry	Market Cap(As of 23 August 2023)	Revenue(2022)
Consumer Staples	Food Items – Confectionery	$44.224B	$10.419B

Hershey, operating in the consumer staples sector, specialises in confectionery products within the food items industry. Hershey’s strength lies in its iconic brands and consistent product innovatio, allowing it to main a competitive edge. 

Dividend yield ^[5]

Dividend Yield2.25%	Annual Dividend$4.76	Ex Dividend DateAugust 17, 2023	Annualised 3-Year Dividend Growth9.02%
Payout Ratio54.78%	Payout PeriodQuarterly	Next Div PaymentSeptember 15, 2023	Consecutive Growth14 Years

Hershey stands out in the consumer staples sector with its consistent dividend payouts which are distributed quarterly every year. Hershey’s commitment to its shareholders is evident in its 14 consecutive years of dividend growth. With an annualised 3-year dividend growth rate of 9.02%, it shows the company’s dedication to returning value to its investors.

Stock split history ^[6]

Since The Hershey Company’s first public listing in 1927, the company has undergone a total of 5 stock splits. Hershey’s split their stock for the first time in 1947.

Stock split list ^[7]

Date	Stock Split
16 September 1947	3:1
15 September 1983	2:1
15 September 1986	3:1
13 September 1996	2:1
15 June 2004	2:1

What could affect Hershey’s share price

Here are some factors that could affect the share price of a stock like Hershey.

1. Cocoa price spike ^[8]
Chocolate manufacturers like Hershey are facing a challenging year ahead as soaring cocoa prices hit a 46-year high and sugar prices reaching their highest point in over a  decade. Current data from Nielsen paints a concerning picture: chocolate consumption in Europe and North America experiencing a decline due to the 20% surge in chocolate prices over the past two years. 

The increase in manufacturing costs and chocolate prices might further dampen demand, resulting in lower sales volume for Hershey in the near future.

2. Hershey buys back Smiths Falls facility ^[9]
Hershey is making a strategic move by repurchasing its inaugural facility outside the United States, located in Smiths Falls, Ontario, Canada. Jason Reiman, the company’s Chief Supply-Chain Officer, has underlined the significance of this acquisition within their broader investment strategy aimed at fortifying their supply-chain network, a move designed to support future growth. 

This acquisition positions Hershey to manage costs more effectively, which is particularly crucial in the face of rising industry expenses. 

Why trade Hershey stocks

1. Hershey’s consistent growth ^[10]
With growth showing no signs of slowing down, Hershey seems to be presenting a trading opportunity for investors.

The company reported a total revenue of $10.4 billion for the full year in 2023, making an impressive 16% increase compared to the previous year. This upward trend continued into Q1 2023, where April’s report headlines $2.9 billion in sales, reflecting a 12% year on year growth.

Hershey has also achieved growth across all its geographical segments, with its international business increasing 19% year over year during Q1 2023

2. Dividends ^[11]
Hershey has been consistently increasing their dividends for the past 14 years, showcasing not only its enduring financial stability but also its ability to maintain a dependable dividend stream moving forward.

Here is Hershey’s dividend payout over the past 14 years:

Year	Dividend Payout (USD$)
2022	3.874
2021	3.41
2020	3.154
2019	2.99
2018	2.756
2017	2.548
2016	2.402
2015	2.236
2014	2.04
2013	1.81
2012	1.56
2011	1.38
2010	1.28
2009	1.19

Trade Hershey with Vantage

Vantage offers commission-free and secure trading of Hershey and other leading US stocks via Contracts for Differences (CFDs). With Vantage, you will be able to trade a broad selection of US shares with zero commission. Sign up for a live account and start trading today!  

References