Core Insights - Investors are increasingly looking to dividends for current income, especially during uncertain times, with ETFs providing efficient options for income generation [1] - The Fidelity High Dividend ETF (FDVV) has shown strong performance potential alongside its income stability, with a year-to-date return of 10.89% [2][3] ETF Performance - FDVV charges a low fee of 16 basis points and tracks the Fidelity High Dividend Index, focusing on a smaller group of large- and midcap dividend providers [2] - The fund has a distribution yield of 2.97% and a 30-day SEC Unsubsidized Yield of 2.78% as of August 25, indicating its ability to provide current income [3] Notable Stocks - The Hershey Co. (HSY) has delivered an 8.6% return year-to-date, with a return on equity of 34.6% and a year-over-year revenue growth of 26% [4] - AES Corp. (AES) has seen a significant return of 29.7% over the last three months, following a 5.6% year-to-date performance, highlighting its appeal in the utilities sector [5] - Citigroup (C) has achieved a 34.4% return year-to-date, supported by a five-year revenue growth of 10.55% [6] Investment Outlook - FDVV is positioned as a dividends ETF that offers more than just fixed income, making it a compelling option for investors seeking both income and growth potential [6]

Core Insights - The Hershey Company is enhancing its focus on efficiency through its Advancing Automation and Agility (Triple A) transformation program, now expecting $150 million in net savings for the year, an increase from the previous forecast of $125 million, and raising the three-year target to $400 million from $350 million [1][9] Group 1: Cost Management and Efficiency - A key initiative, Smart Complexity, aims to simplify packaging and product assortments, streamline manufacturing, and utilize technology-enabled automation, which is expected to reduce costs and create efficiencies for both the company and its retail partners [2] - Hershey's execution on cost management is ahead of schedule, showing visible improvements in manufacturing and administrative efficiency, indicating confidence in achieving higher productivity than initially anticipated [4] Group 2: Margin Pressures and Recovery Strategies - Hershey's adjusted gross margin decreased by 510 basis points to 38.1% in Q2 2025 due to cocoa inflation and tariffs impacting profitability, with the expanded savings pipeline intended to help offset these pressures and support margin recovery [3] - Management believes that combined pricing actions, procurement strategies, and productivity initiatives could restore over 500 basis points of adjusted gross margin by 2026 [3][9] Group 3: Market Performance and Valuation - Hershey's shares have declined by 2.3% over the past month, underperforming the industry decline of 1.5% and the broader Consumer Staples sector and S&P 500 index growth of 1.7% and 2%, respectively [5] - The company currently trades at a forward 12-month P/E ratio of 29.09, which is higher than the industry average of 23.49 and the sector's 17.12, indicating a premium valuation relative to peers and reflecting market expectations regarding its business stability [10]

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior [1] - It highlights the author's extensive experience in asset management, particularly in equity analysis and research [1] Group 1: Professional Background - The author has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1] - The professional background includes advising on and implementing multi-asset strategies, with a strong emphasis on equities and derivatives [1] Group 2: Investment Philosophy - The article promotes the idea that investing should be accessible, inspiring, and empowering for all investors [1] - It encourages collaboration among investors to build confidence in long-term investing [1]

Group 1 - Major consumer brands are facing a shift in their traditional pricing and marketing strategies due to rising costs and changing market conditions, leading to a reduction in marketing budgets despite increasing product prices [1][4] - Companies like Church & Dwight typically allocate around 11% of net sales to marketing expenses, but this trend is changing as brands are forced to do more with less [1][5] - The candy industry, particularly with products like Ferrara's Nerds Gummy Clusters, is seeing a shift towards higher profit margin products, prompting increased investment in marketing for these items despite initial poor market data [2][4] Group 2 - Cocoa prices have surged from a historical range of $2,000 to $3,000 per ton to between $8,000 and $12,000 due to poor harvests and economic pressures, impacting the profitability of chocolate products [4][5] - Hershey's CFO indicated that price increases alone are insufficient to cover cocoa inflation costs, leading the company to explore cost-cutting measures and focus on non-chocolate product marketing [5][6] - Procter & Gamble is shifting its strategy from increasing advertising spending to relying on product innovation and packaging improvements, planning to cut $500 million to $700 million from its marketing budget annually [6][8] Group 3 - Brands are increasingly using pricing strategies rather than marketing investments to drive growth, with a focus on targeted pricing approaches [8] - The Trade Desk, which primarily serves large clients, is experiencing pressure as these clients reduce advertising budgets due to tariffs and policy changes, highlighting the challenges faced by the advertising industry [8][9] - The overall outlook for the advertising industry appears challenging, with expectations of difficulties persisting for at least a year [9]

Economic Overview - The U.S. economy faced significant volatility with mixed signals, as major indexes like the S&P 500 and Dow Jones increased by 0.28% and 1.60%, while the Nasdaq Composite decreased by 0.62% [1] - The Federal Reserve Chair Jerome Powell suggested the possibility of an interest rate cut as early as September during the Jackson Hole symposium [1] Labor Market Concerns - A slowing labor market is a primary concern for the Federal Reserve, with recent data showing a downward revision of job growth in May and June, and only 73,000 jobs added in July [2] - Despite strong Q2 GDP numbers, labor market and manufacturing data indicate a potential economic slowdown, presenting a dilemma for the Fed between supporting the job market and combating inflation [2] Zacks Research Performance - WisdomTree, Inc. shares increased by 28% since being upgraded to Zacks Rank 2 (Buy) on June 23, outperforming the S&P 500's 8.7% gain [4] - Hafnia Limited shares rose by 14.1% after a Zacks Rank 2 upgrade on June 25, also surpassing the S&P 500's 6.4% increase [5] - A hypothetical portfolio of Zacks Rank 1 stocks returned +20.65% in 2023, compared to +24.83% for the S&P 500 index [6] Focus List and Model Portfolios - The Zacks Focus List portfolio returned +10.91% in 2025 (through July 31) compared to +8.59% for the S&P 500 index [12] - The Top 10 portfolio has delivered a cumulative return of +2,220.4% since 2012, significantly outperforming the S&P 500 index's +517.8% return [24] Sector-Specific Performance - Johnson & Johnson and The Hershey Company, part of the Earnings Certain Dividend Portfolio, returned 17.2% and 16.8% respectively over the past 12 weeks, driven by investor interest in quality dividend stocks amid market volatility [19] - Mettler-Toledo International Inc. and PepsiCo, part of the Earnings Certain Admiral Portfolio, saw returns of 18.6% and 15.7% over the past 12 weeks [15]

Group 1 - In November 2024, the analysis covered the two largest publicly traded sweet-snack conglomerates, Hershey and Mondelēz, with Hershey being the preferred pick, returning 4% to date, while Mondelēz is down [1] - The analyst has over five years of experience in Consulting & Audit Firms, including positions in Valuation, FP&A, and Controlling, indicating a strong academic finance background [1] - The approach is primarily value-oriented, emphasizing that valuation is more indicative of long-term opportunities or risks rather than short- to mid-term timing [1] Group 2 - The article expresses the analyst's own opinions and does not involve any stock, option, or similar derivative positions in the mentioned companies, although there may be plans to initiate a long position in the near future [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [3]

Core Viewpoint - Companies with strong consumer brands can provide steady streams of passive income through dividends, making them attractive investments during market volatility Group 1: Coca-Cola - Coca-Cola is a leading beverage company with over 2 billion servings consumed daily, offering a forward dividend yield of 2.91% [3][4] - The company achieved organic revenue growth of 5% year-over-year in the first half of 2025, with adjusted earnings growing by 7% [4] - Coca-Cola generated $12 billion in net income from $47 billion in revenue over the past year, maintaining a record of 63 consecutive years of dividend growth [5] - Management is focused on growth through marketing adjustments, new packaging, and AI tools to optimize pricing and speed up product delivery [6] - The CFO expressed confidence in long-term free cash flow generation and the ability to invest in the business while returning capital to shareholders [7] Group 2: Hershey - Hershey, known for its snacks and candies, offers a high forward yield of 3.08% despite a 35% decline from its previous high due to rising cocoa prices [10][11] - Adjusted sales grew by 0.4% in 2024, with expectations for at least 2% growth in full-year sales, indicating healthy consumer demand [12] - The company anticipates a 36% decline in adjusted earnings this year but expects a rebound in earnings by 2026, supported by strategic pricing and productivity enhancements [13] - Hershey generated $1.6 billion in free cash flow over the past year, paying out 65% of it in dividends, translating to a quarterly payment of $1.37 per share [13] - Cocoa prices have decreased by 28% in 2025, which may lead to a resumption of dividend growth once costs stabilize [14]

Core Insights - The Hershey Company has appointed Natalie Rothman as Chief Human Resources Officer, effective August 18, 2025, to lead its global HR function [1][3] - Rothman has over 25 years of HR experience and is recognized for her ability to build high-performing teams and modernize HR operations across various industries [2][3] Company Overview - The Hershey Company is a leading snacks company with over 20,000 employees globally, generating more than $11.2 billion in annual revenues from over 90 brand names in approximately 80 countries [5] - The company is committed to ethical and sustainable operations, with a long history of supporting education through initiatives like the Milton Hershey School [6] Leadership Experience - Rothman previously served as CHRO at Inspire Brands, where she implemented business process automation and AI tools to modernize HR operations [3] - At Advance Auto Parts, she led efforts to drive cultural change and enhance organizational capabilities through technology [3][4] Professional Affiliations - Rothman is a member of the New York and New Jersey Bar and the Human Resources Policy Association, and serves on the boards of Udemy and Pearce Services [4]

Core Viewpoint - The recent decline in Hershey's stock price is attributed to rising cocoa prices, which have increased by approximately 20% over the past month, impacting costs and margins for the company. However, this situation presents a long-term investment opportunity as the market dynamics are expected to stabilize [3][6]. Company Overview - Hershey's current stock price is $177.97, with a 52-week range between $140.13 and $208.03. The company has a dividend yield of 3.08% and a P/E ratio of 23.63 [2]. - Hershey's market capitalization stands at $35.7 billion, with a gross profit margin of 40.1% and a net income margin of 13.5%, despite the pressures from rising cocoa prices [6]. Financial Metrics - The average net income margin for Hershey is around 17%, indicating potential for recovery as cocoa prices normalize [6]. - The return on invested capital (ROIC) for Hershey is 19.3%, which is above average for U.S. companies, suggesting strong future compounding value for investors [8]. Stock Forecast - Analysts have set a 12-month stock price forecast for Hershey at $168.83, indicating a potential downside of 5.13% from the current price. However, some analysts have provided higher price targets, with Barclays suggesting $190 and DA Davidson valuing it at $188, indicating possible upside [10][11]. - Institutional investors have increased their holdings in Hershey, with Vanguard Group raising its stake by 1.1% to $3.1 billion and Charles Schwab Investment Management increasing its stake by 2.5% to $849.1 million, reflecting growing confidence in the stock [12][13].

Group 1 - Major chocolate companies, including Ferrero and Hershey, have announced price increases for their chocolate products due to rising cocoa prices and increased competition from domestic brands [1][2][3] - Hershey indicated that it would raise average chocolate product prices by double digits, while Nestlé also announced price hikes for its chocolate products [2] - Cocoa prices have surged, with futures reaching $7,380 per ton as of July 23, representing a 121% increase compared to two years ago [3] Group 2 - The increase in cocoa prices is attributed to a decline in international cocoa production and supply chain issues, leading to sustained high prices for over two years [3][5] - The price hikes from major chocolate brands may impact downstream markets, such as restaurants and dessert shops, although the overall effect on the companies' performance is expected to be minimal due to their strong bargaining power [4][5] - The market for chocolate products is becoming increasingly competitive, with the rise of domestic brands and the introduction of chocolate desserts in various retail outlets, putting pressure on traditional chocolate giants [3][4]