10 Best S&P 500 Stocks to Buy For Dividend Growth

6. The Hershey Company (NYSE:HSY)

5-Year Average Dividend Growth Rate: 12.50%

The Hershey Company (NYSE:HSY) is a Pennsylvania-based multinational confectionery company that is known for its chocolates, snacks, and pantry items. The company has a strong track record of growth, expanding both through internal development and strategic acquisitions. Lately, it has been acquiring salty snack brands—such as Dot’s Pretzels—to diversify its offerings beyond chocolate and confectionery products. The stock is down by over 11% in the past 12 months due to high cocoa prices.

The Hershey Company (NYSE:HSY) expects that the sharp rise in cocoa prices will significantly impact its earnings in 2025. However, it remains committed to driving revenue growth and market share gains, executing its transformation and productivity initiatives, and positioning itself for long-term performance that outpaces its industry peers. In the fourth quarter of 2024, the company reported a revenue of $2.9 billion, which showed a nearly 9% growth from the same period last year. The revenue also beat analysts’ estimates by $45 million.

Net sales, on an organic and constant currency basis, grew by 9.0%. Acquisitions contributed a modest 0.2 percentage point boost to net sales, while currency fluctuations had a negative impact of 0.5 percentage points. The company’s reported net income reached $796.6 million, translating to $3.92 per diluted share, reflecting a 130.6% increase.

The Hershey Company (NYSE:HSY)’s cash position remained solid at the end of FY24, as it had approximately $731 million available in cash and cash equivalents, up from $402 million in 2023. It offers a quarterly dividend of $1.37 per share and has a dividend yield of 3.25%, as recorded on March 26. HSY is one of the best dividend stocks on our list as the company holds a 15-year track record of dividend growth.