What Hershey actually does

Hershey is the largest chocolate maker in North America. Its brands include Hershey’s, Reese’s, Kisses, Kit Kat (in the US), Twizzlers and Jolly Rancher, and it has added salty snacks such as SkinnyPop and Dot’s Pretzels. It was founded in 1894 in Hershey, Pennsylvania.

How the business makes money

It sells candy and snacks mostly through grocery, convenience and mass retailers, with seasonal peaks around Halloween, Easter and Christmas. Its profit depends on its raw-material costs, especially cocoa and sugar, which have swung sharply in recent years.

The dividend story

Hershey pays a quarterly dividend and has raised it regularly for many years. The yield is moderate. In years when cocoa costs spike, profits can fall even if sales hold up, so the safety of the payout depends on margins.

What to keep an eye on

  • Cocoa prices. A key swing factor for profit.
  • Consumer habits. Health trends and weight-loss drugs may reduce snacking.
  • Concentration. Most sales are in one country.
  • Competition. Mars, Mondelez and store brands.

Quick take

Hershey is a strong consumer brand with a steady dividend, but it is sensitive to cocoa costs.