Hormel Foods Corporation

HRL
Consumer DefensiveDividend King
$19.51
5.99%Undervalued

Hormel Foods Corporation (HRL) is a Consumer Defensive company that currently yields 5.99% — historically undervalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $25.01 and the overvaluation threshold at $53.21. Hormel Foods Corporation holds a quality score of 43/100 (Average), reflecting 60 consecutive years of dividend growth with a 188% payout ratio. The 5-year dividend CAGR stands at 4.5%.

HRL Dividend Yield History — Weiss Valuation

Underval. $25.01Overval. $53.21

Distance to undervalued

In undervalued territory

Price sits 22.0% 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

$25.01

Current yield

5.99%

Research checklist

What to clear before buying the yield

Updated Oct 8, 2026

Dividend durability

60Y

Long dividend history supports a deeper look.

Earnings payout

188%

Coverage deserves a closer look in filings.

Cash payout

104%

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

2026-10-07 → 2026-10-08

Price

-2.7%

$20.06 → $19.51

Price fell 2.7% since the prior snapshot.

Dividend yield

+0.16 pp

5.83% → 5.99%

Yield expanded from 5.83% to 5.99%.

Why Now?

Hormel Foods Corporation is trading near its historical undervaluation band.

Current yield 6.0% vs historical max 4.0% (149% of maximum).

14 consecutive years without a dividend cut.

Elevated payout ratio of 188%.

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

$626

Year 10 Income

$1,785

Yield on Cost

19.51%

Total Income

$10,973

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

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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$19.51
Annual Dividend$1.17
Current Yield5.99%
Yield — Max (10Y)4.03%
Yield — Min (10Y)2.02%
Undervalued Below$25.01
Overvalued Above$53.21
Payout Ratio188.31%
CAGR Dividend 5Y4.5%
CAGR Dividend 10Y8.8%
Years No Cut14y
Historically elevated yield

HRL has an undervalued Weiss signal. Review the risks and current trading costs before acting.

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60
consecutive years of dividend growth