Hormel Foods: What Nobody Talks About

 

Reuben Gregg Brewer, The Motley Fool

via NASDAQ - Jan 6, 2022

 

Hormel Foods (NYSE: HRL) is offering investors a historically high 2.1% dividend yield today -- and it's backed by a business with such iconic brands as SPAM, Planters, and Dinty Moore that have supported over five decades' worth of annual dividend increases…

 

Who owns Hormel?

 

When companies sell stock, the public broadly speaking is the majority owner. That said, big investors like pension funds, private equity shops, and asset managers often end up being the largest shareholders. That means they generally wield a huge amount of sway over companies -- often with good intentions. For example, Blackrock (NYSE: BLK) has made ESG investing a material focus of its exchange-traded funds (ETFs).

 

Then there are activist investors who are determined to make major changes in a company's direction. For instance, Nelson Peltz of Trian Partners engaged in a huge proxy fight with Procter & Gamble a few years back. When the dust settled, the company ended up putting him on the board (although he has since stepped down).

 

In both of these situations, big investors are pushing for corporate changes that may or may not be aligned with what smaller investors really want -- and could sometimes result in bad investment decisions…

 

What this means for investors

 

What this means is that Hormel is protected from the influence of large investors other than the Hormel Foundation -- and can go about its business without fear of being pushed toward short-term goals over more appropriate long-term ones. Don't underestimate the value of this independence as it means the company can nurture business divisions that are drags over the near term but that present material long-term opportunity...

 

Independence ...

 

more, including links, chart  

https://www.nasdaq.com/articles/hormel-foods%3A-what-nobody-talks-about