Since the beginning of 2023, the big story on Wall Street has been technology. The boring sector of the consumer stapler is lagging behind and far behind the technological sector and wider S & P 500 index (Snpindex: ^GSPC) In the past three to five years. Since the beginning of 2024, there have been a shift of mood on Wall Street, and investors have returned to the annoying, conservative choice of investment. This is the amplifier companies to connect consumers around the world.
However, there are two dividend kings who continue to follow their peers and, potentially, offer long -term investors in dividends.
Technology shares are mostly a growth story and is currently a hot topic artificial intelligence (Ai). This is all good and good, but hot investment topics generally lead to extended estimates. And when investors are cautiously converted, these assessments can be compressed quickly. Looks like this happened in the last month or so, with a big fall in the technology sector pulls Index S&P 500 lower.
During these periods, investors are often transferred to more conservative investments, such as stock sector sector. Consumer staples are, basically, products that people buy regularly, even if the economy has fallen into a recession. Imagine toilet paper, toothpaste and food paste. You may be able to put off your purchase AppleNext is an iPhone but you can’t stop buying Procter & gambleBathroom tissue, UnileverWith a toothpaste, or General Mills‘Soups and cereals.
Basically, a stapler’s consumer sector is filled with reliable and slow growing companies. Two currently worth watching are the king’s dividends Pepsico(NASDAQ: PEP) and Hormol food(Nyse: HRL). Both were lagging behind the wider consumer space and today they offer historically high yields dividends.
From a business perspective, there is nothing wrong with Pepsico. He managed to increase organic sales by 2% 2024, and the custom earnings increased by 9%. These are solid numbers in the consumer connecting area. Looking at 2025, project management projects low one-core organic sales growth and medium single-digit, adapted earning growth, also a solid number.
However, 2024 and 2025 were slower than what Pepsico had achieved when he was able to push a large price increase thanks to the inflation that comes out of the worst parts of the Koronavirus pandemia. Slowing down some investors to leave the company’s shares, which is still traded by about 20% of its latest top. It also offers a historically high yield of 3.5% dividend.
This suggests that you still have the opportunity to buy a very good running and a variety of work (with surgery in drinks, snacks and packaged food) at an attractive price. Even the most conservative investors should feel comfortable possession of Pepsico, noting that the dividend has been increasing annually for 52 years and counts.
Hormol is a different story because it faces some material issues. Significantly, the food manufacturer had a rather weak fiscal 2024, and its first quarter in the fiscal 2025 was mixed, with organic sales by 1%, but adapted earnings lower by 11%. This is basically a continuation of the trend for food manufacturers, which is unable to push the price increase as quickly as peers, facing bird flu, affects a dispute recovery in China, and faced production issues in recently acquired business of the plantation.
Hormol is a bit of a turnaround at the moment, but the administration is doing what it can. And it remains confident enough in its long -term future to increase its dividend every year. The guard is up to 59 consecutive years. Accordingly, the relatively weak financial effect of the company is seriously reduced to investors, which has lost 40% of its value in the last three years. This pushed the dividend yield to a historically high 3.8%.
The administration, however, does not sit still and has a strong backlog in the form of hormal foundation, which controls about 47% of voting rights in the company. In other words, Hormol has a free space for making long -term decisions, instead of hurrying to calm Wall Street, whose latter could lead to short -term repairs that do not solve long -term problems. If you think in decades, not for days and you can handle the investment in a contrasting way, hormal could be a good stock for your portfolio.
If you are like me, you do not mind entering areas that others avoid. I believe you find the best values there, although sometimes Wall Street even puts pretty good companies in a dog house. This is the case today with Pepsico, who does not do as bad as a job, despite what the fall price can be indicated. The hormula is a little harder to sell, since it has been involved in material winds for some time. However, the dividend king has a long history of success, and the Hormol Foundation gives freedom to adapt its business in ways that other companies cannot.
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Reuben Gregg Brewer It has positions in the generally mills, hormal foods, pepsico, procter & gamble and unilever. Motley Fool has positions and recommends Apple. Motley Fool recommends Unilever. Motley Fool has disclosure rules.
