Hormel (HRL) is a huge food company today, but it started from humble beginnings. In 1891, George A. Hormel established the Geo. A. Hormel & Co. in Austin, Minnesota.
The company realized rapid growth, as consumers took a liking to fresh pork products. By 1910, the company was already planning nationwide and international expansion.
In 1926, Geo. A. Hormel & Co. developed the world’s first canned ham.
The company just kept on growing, and today Hormel generates more than $9 billion of annual sales.
Hormel possesses an amazing dividend history. The company has paid more than 350 quarterly dividends without interruption. That streak goes back to its initial public offering in 1928.
Hormel is also a great dividend growth stock. It has raised dividends for 50 years in a row. Hormel is a Dividend Aristocrat. You can see the entire list of Dividend Aristocrats here.
Keep reading this article to learn more about the investment prospects of Hormel.
Business Overview
Hormel’s business is structured in five different operating segments:
Hormel has many easily recognizable brands. It has a diversified portfolio across product categories, including both shelf-stable and refrigerated products.
Source: Company website
The strength of Hormel’s business model is evident by its historical growth. The company has managed to continue growing through all sorts of challenges over time.
Source: Barclays 2016 Consumer Staples Conference, page 12
Hormel’s business strength lies in its ability to envision and adapt to changing consumer tastes. Hormel saw explosive growth in the early years of the 20thcentury because of the boom in pork consumption.
Today, Hormel is capitalizing on the boom in turkey consumption. U.S. consumers are eating more turkey and less red meat, as the modern consumer is very health-conscious.
