Hormel Foods Corporation

HRL
Consumer DefensiveDividend King
$24.54
4.75%Undervalued

Hormel Foods Corporation (HRL) is a Consumer Defensive company that currently yields 4.75% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $27.82 and the overvaluation threshold at $53.48. Hormel Foods Corporation holds a quality score of 43/100 (Average), reflecting 60 consecutive years of dividend growth with a 137% payout ratio. The 5-year dividend CAGR stands at 4.5%.

HRL Dividend Yield History — Weiss Valuation

Underval. $27.82Overval. $53.48

Distance to undervalued

In undervalued territory

Price sits 11.8% below the Weiss buy zone ceiling

The current yield already clears the historical undervaluation threshold. The next question is whether the dividend quality and payout profile deserve that higher yield.

Zone ceiling

$27.82

Current yield

4.75%

Research checklist

What to clear before buying the yield

Updated Jul 9, 2026

Dividend durability

60Y

Long dividend history supports a deeper look.

Earnings payout

137%

Coverage deserves a closer look in filings.

Cash payout

137%

Confirm cash conversion and one-off effects.

Dividend growth

4.5%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-07-082026-07-09

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Hormel Foods Corporation is trading near its historical undervaluation band.

Current yield 4.8% vs historical max 4.0% (120% of maximum).

14 consecutive years without a dividend cut.

Elevated payout ratio of 137%.

What matters now

Read the signal before the headline yield

Valuation is the invitation here: the yield is elevated versus its own history.

The 43/100 quality score says the headline yield needs extra skepticism.

The earnings payout ratio is above 100%, so coverage is the first risk to unpack.

HRL Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$497

Year 10 Income

$1,242

Yield on Cost

13.34%

Total Income

$8,076

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

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Moat rating & analyst fair value

Morningstar ↗

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HRL Dividend Quality Score

Quality Score

43/ 100

Average

Payout Ratio0/25
Dividend Streak20/25
Growth (CAGR 5Y)8/20
Yield vs History15/15
FCF Coverage0/15

Key Metrics

Current Price$24.54
Annual Dividend$1.17
Current Yield4.75%
Yield — Max (10Y)3.97%
Yield — Min (10Y)2.02%
Undervalued Below$27.82
Overvalued Above$53.48
Payout Ratio137.06%
CAGR Dividend 5Y4.5%
CAGR Dividend 10Y8.8%
Years No Cut14y
In the buy zone

HRL is historically undervalued. Ready to add it to your portfolio?

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60
consecutive years of dividend growth