Is Hershey a Millionaire-Maker Stock?

Company Overview - Hershey is an iconic consumer staples company known for its confectionery treats, with a historically high dividend yield of 3.2% today, suggesting the stock is attractively priced [6] - The company has a strong relationship with The Hershey Trust, which controls all of Hershey's super-voting class B stock, ensuring the company remains standalone and focused on long-term growth [1][4] - Hershey has a proven track record of creating significant wealth for investors, with a $10,000 investment in 1980 now worth around $1.6 million [4] Market and Industry Challenges - The company faces pressure from a surge in cocoa prices, a key ingredient in chocolate, which may lead to a period of relatively weak financial performance [7] - Investors are concerned about the potential impact of new weight loss drugs on consumer staples companies that produce sugary snacks, though chocolate's low-cost indulgence factor may mitigate this risk [2] Strategic Initiatives - Hershey is diversifying its product portfolio by expanding into non-chocolate sweets and salty snacks like popcorn and pretzels [8] - The company is also focusing on geographical expansion by introducing its biggest brands in foreign markets, which could pave the way for smaller brands in the future [5] Investment Perspective - Hershey's stock has lost around a third of its value since hitting all-time highs in 2023, making its dividend yield historically high [3][4] - The Hershey Trust's vested interest in the company's success ensures a focus on reliable dividend growth, aligning with the goals of dividend investors [4] - Despite current risks, the historically high yield and long-term success of the company make Hershey an attractive option for investors looking to build a seven-figure portfolio [12]