Catalin Ghita
Hello investors! πŸ‘‹ I didn't have any Consumer Staples diversification in the portofolio (except for $SCHD (Schwab US Dividend Equity ETF)), therefore I went on a search for a quality dividend grower. I came across $HSY (Hershey Co) and I've decided to start a small position this week. I think they are a great addition to the portofolio and align directly with my investing strategy: - They have a current dividend yield of ~2.5% with a great 5 year dividend growth rate of 9%. Their most recent dividend increase is of a stunning 15% in July 2023 πŸ’° - They have a low earnings payout ratio (45%) and a low free cash flow payout ration (54%). The dividend is fully covered and safe πŸ’° - I see constant growth in EPS and Revenue each year. I love the growing trend πŸ“ˆπŸ’° - They are slowly buying back shares πŸ“‰ - High ROE (54%) and high ROIC (27%) βœ” - Very well covered debt βœ” From my DCF valuation model + PE ratio valuation + Dividend yield valuation, $HSY is ~20% undervalued with a price target of 233$. Of course, these are just estimations. Taking into consideration all these factors, I will continue to dollar cost average into this great company. Thank you for reading my post and I welcome you to copy my portofolio and dividend growth strategy! Have a good one!
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