Recent Investment Hormel Foods

Being October almost half over I did my first investment this month and probably only one for September. I invested in very popular stock among the dividend investing community, as I bought 65 shares of Hormel Foods. A company with an amazing financial situation and currently a very fair valuation.

All in all I purchased 65 shares of HRL at a price of 31.68 EUR per share. Based on a yearly dividend of 0.68 USD this makes it a yield of 2.15%. This investment now adds 44.20 USD before tax to my yearly dividend income. The HRL is not high yield dividend stock but it is dividend growth with a potential 10% dividend increase per year. Furthermore HRL has increased its dividend for 50 years in a row.

How much dividend income am I expecting in the future

My new dividend Income
Before taxes my projected full year dividend income is now at 2 112.47 EUR with a yield on costs of 3.79% and after taxes it is at 1 496.94 EUR with a yield on costs of 2.68%. That is an average of 124.74 EUR per month. This is still not not a huge number but compared to where I was a year ago this number feels really great.

My goal until the end of 2017 is to have a dividend income of 1 400 EUR after tax.

Looking at may project dividend chart, I just can say I am on the right track to constantly improve my yearly dividend income. Being into dividend investing for 2 years I have not experienced one dividend cut so far. This just proves that the selection of my companies is not the worst one so far. I do also know 2 years is not such a long period of time :).

Please be aware this number might vary considering the changes in the exchange rate USD to EUR.

What do you think about the food sector? Do you also have HRL in your portfolio?

Disclosure: Long HRL

I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding.

4 Comments

  1. I think its a great buy business wise. Low yield but an average of 15% growth in the past 5 years and I believe 17+ in the last 10 years. I also opened a position last week which I will post about in a few days.

    • You are welcome!

      It is for sure a company which should be in a Dividend Portfolio. Especially considering the current price.

      Cheers

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