Ted Parrish, co-manager of the Henssler Equity Fund (HEQFX), recently conducted an interview with Chuck Jaffe of MarketWatch. In the interview Parrish noted:
"...looking for stocks that combine big, solid dividends with slow growth rates will achieve returns of 10% to 12% annually, regardless of the market's day-to-day volatility."One of his recommendations in the interview was Hershey (HSY). I hope HSY gets into the slow growth on the upside in the near term. The company's stock price one year ago was $52 and it closed at $47 today.
Hershey announced a 10.2% increase in the company's quarterly dividend. The new quarterly dividend increases to 29.75 cents per share versus 27 cents per share in the same quarter last year. The payout ratio on 2008 estimated earnings of $2.44 is approximately 49%. The company has an S&P Quality Ranking of B+.
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Big Dividends, Slow Growth--that's the Ticket
August 3, 2007