The S&P 500 index (^GSPC +0.39%) is offering a tiny 1.1% dividend yield. Coca-Cola‘s (KO 0.29%) yield is more than twice as high at 2.7%. Hershey Foods (HSY 0.33%) has an even higher yield of 3%. And Hormel Foods (HRL 1.34%) tops the list with a 5.8% yield. All are reliable dividend payers, though they’ll probably appeal to different types of investors.
If you have $10,000 to invest, you can buy 127 shares of Coca-Cola, 52 shares of Hershey, or 495 shares of ultra-high yield Hormel. Here’s why you might decide to take the plunge with each of them.
Image source: Getty Images.
Coca-Cola is doing well despite the headwinds
Consumers are tightening their budgets, and buying habits have shifted in a healthier direction. That sounds like it would be bad news for one of the world’s largest beverage companies. And yet, Coca-Cola grew case volume by 1% and organic sales by 5% in 2025. In the first quarter of 2026, case volume increased 3%, and organic sales rose 10%. Simply put, Coca-Cola is thriving even in the face of the headwinds that are causing consternation across the consumer staples peer group.
Coca-Cola is actually one of the world’s largest consumer staples businesses. It can compete with any peer on brand strength, marketing skills, distribution breadth, and innovation capabilities. And it has a proven history of rewarding investors, given its status as a Dividend King, with over 50 years of annual dividend increases backing its well above market 2.7% yield.
Today’s Change
(-0.29%) $-0.23
Current Price
$80.03
Key Data Points
Market Cap
$345B
Day’s Range
$79.95 – $80.87
52wk Range
$65.35 – $82.00
Volume
41K
Avg Vol
15M
Gross Margin
61.82%
Dividend Yield
2.57%
For a conservative dividend investor, Coca-Cola could be a top-notch dividend opportunity. It isn’t cheap, but the price-to-earnings ratio is a touch below its five-year average, suggesting that it is at least fairly priced right now.
Hershey Foods has shocking pricing power
Hershey Foods has been dealing with volatility in the cocoa market, leaving investors with a sour taste. Add to that growing use of GLP-1 weight-loss drugs, which investors seem to fear will lead to a material drop in demand for the confections Hershey sells. The stock is down 30% from its 2023 high, pushing the dividend yield to a historically attractive 3%.
However, cocoa markets are starting to normalize. And candy is an affordable luxury that people use as treats, not their main form of sustenance. So far, consumers have continued to buy even as prices are rising and healthier eating habits spread. The first quarter’s organic sales trends show just how strong Hershey’s business is. Price increases in the U.S. confectionery space added 12 percentage points to the division’s 8% organic growth, with volume declines only taking four percentage points off the total.
Today’s Change
(-0.33%) $-0.65
Current Price
$195.02
Key Data Points
Market Cap
$40B
Day’s Range
$195.02 – $196.59
52wk Range
$150.04 – $239.48
Volume
104
Avg Vol
1.9M
Gross Margin
35.56%
Dividend Yield
2.84%
That’s huge pricing power, with the international confection division, a smaller segment of the business, performing even better. It is very clear that customers want to buy Hershey’s candy despite rising prices, economic uncertainty, and a broader shift toward healthier foods. Meanwhile, Hershey’s annualized dividend growth over the past decade was a very attractive 9%. Growth and income investors should probably take a close look at this still well-positioned food business.
Hormel has an ace hidden up its sleeve
Hormel has overhauled its business, shifting away from commodity-based products and toward branded fare. The process has been a long one, and it was interrupted by the coronavirus pandemic. Financial results haven’t been great. But there are early signs that Hormel is making progress, noting that organic sales have increased for five quarters in a row.
There’s more work to be done, but the branded food company’s turnaround appears to be gaining traction. That said, while investors are deeply negative, pushing the stock down 60% from its 2022 high, Hormel has no need to rush its turnaround just to appease Wall Street. The philanthropic Hormel Foundation controls roughly 47% of Hormel the company’s stock, giving management the leeway to make long-term decisions that are in the best interest of the company.
Today’s Change
(-1.34%) $-0.27
Current Price
$19.91
Key Data Points
Market Cap
$11B
Day’s Range
$19.81 – $20.16
52wk Range
$19.81 – $31.86
Volume
11K
Avg Vol
4.8M
Gross Margin
15.33%
Dividend Yield
5.85%
Notably, The Hormel Foundation uses the dividends it collects from this Dividend King to support its philanthropic efforts. So if you are an income investor drawn to Hormel’s lofty 5.8% yield, you have a major partner that feels just as strongly as you do about the sanctity of the dividend. This turnaround stock could be a good choice for more adventurous dividend investors.
Options for different types of dividend investors
Not every dividend stock is a good fit for every investor. Coca-Cola is a strong option for conservative types. Hershey could be a fit for those willing to take on a little more risk to achieve a little more yield. And Hormel’s lofty yield might be perfect for more aggressive income seekers, noting the support the business has from The Hormel Foundation.
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