Why Hershey, Flowers Foods And Shutterstock Are Winners For Passive Income

Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. Hershey, Flowers Foods and Shutterstock have rewarded shareholders for years and recently announced dividend increases. These companies currently offer dividend yields of around 3-4%.

Hershey

The Hershey Company HSY is a leading confectionery manufacturer in the United States and internationally. It offers chocolate and non-chocolate confectionery products, gum and mint refreshment products, protein bars, pantry items and snack items. The company primarily markets its products under Hershey's, Reese's, Kisses, Jolly Rancher, Almond Joy, Brookside, Kit Kat, Payday, Rolo, Twizzlers and Whoppers.

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The company has raised its dividends every year for the last 15 years. In its latest dividend hike announcement on Feb. 8, Hershey raised the quarterly dividend from $1.19 to $1.37 per share, equal to $5.48 annually. The dividend yield on the stock currently stands at 3.29%.

Hershey’s annual revenue (as of Sept. 30) stood at $10.97 billion. According to its most recent earnings announcement on Nov. 7, the company posted revenues of $2.99 billion and an EPS of $2.34 for Q3 2024. Both figures were below Street estimates.

Flowers Foods

Flowers Foods, Inc. FLO produces and markets packaged bakery food products in the United States. The company distributes its products, which include fresh bread, buns, rolls, snack cakes and tortillas, through a direct-store delivery system and a warehouse delivery system and operates bakeries. The key brands are Nature's Own, Whitewheat, Cobblestone Bread, Wonder, Dave's Killer Bread, Canyon Bakehouse, Mrs. Freshley's and Tastykake.

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The company has raised its dividends consistently for the last 11 years. According to its most recent dividend hike announcement on May 23, its board of directors increased the quarterly dividend by 4.3% to $0.24 per share, equal to $0.96 annually. Currently, the dividend yield on the stock is 4.77%.

Flowers Foods’ annual revenue (as of Sept. 30) stood at $5.12 billion. As per its most recent earnings announcement on Nov. 8, the company posted Q3 revenues of $1.19 billion, compared to the consensus estimate of $1.20 billion and an EPS of $0.33, compared to the consensus of $0.29.

Shutterstock

Shutterstock, Inc. SSTK provides a platform to connect brands and businesses to high-quality content in North America, Europe and internationally. The company offers image services consisting of photographs, vectors and illustrations, used in visual communications such as websites, digital and print marketing materials, corporate communications, books, publications and others.

Shutterstock has increased its dividends every year for the last five years. According to its most recent dividend hike announcement on Jan. 30, the company increased the quarterly dividend by 11% to $0.30 per share, equaling an annual figure of $1.20 per share. The current dividend yield on the stock is 3.99%.

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Shutterstock’s annual revenue (as of Sept. 30) stood at $902.17 million. According to the company’s most recent earnings announcement on Oct. 29, it posted revenues of $250.59 million and an EPS of $1.31 for Q3 2024. Both figures were above consensus estimates.

Getty Images and Shutterstock announced on Tuesday their agreement to merge, forming a top visual content company with an enterprise value of $3.7 billion, as reported by Benzinga.

Hershey, Flowers Foods and Shutterstock are good choices for investors seeking reliable passive income. Their dividend yields of around 3-4% and long history of consistent hikes make them attractive to income-focused investors.

Check out this article by Benzinga for three more stocks that offer high dividend yields. 

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