20 Worst Dividend Aristocrat Stocks According to Analysts

12. Hormel Foods Corporation (NYSE:HRL)

Average Analyst Rating Score: 3.4

An American food processing company, Hormel Foods Corporation (NYSE:HRL) ranks twelfth on our list of the worst dividend aristocrat stocks according to analysts. The company has been paying regular dividends to shareholders since its IPO in 1928 and has raised its payouts for 58 years straight. It offers a quarterly dividend of $0.2825 per share and has a dividend yield of 3.71%, as of June 14.

Hormel Foods Corporation (NYSE:HRL) reached its all-time high in mid-2022 and has declined by over 42% since then. Wall Street has been negative about the stock because it failed to reach its previous highs and posted disappointing results in FY23. The company has struggled to pass on rising costs to consumers, and its turkey business continues to face challenges due to avian flu. In the second quarter of 2024, it reported year-over-year declines in both volume and pricing for whole-bird turkeys, along with reduced net sales in the convenient meals and proteins segment. Its international and retail volumes also dropped during the quarter by 7% and 5%, respectively. The international volumes showed a decline mainly because of lower sales in China and the lower commodity export volumes.

Hormel Foods Corporation (NYSE:HRL) is down by over 7% this year so far and over 26% in the past 12 months. Street analysts have maintained a consensus Hold rating on the stock.

Insider Monkey’s database of Q1 2023 indicates that 27 hedge funds held stakes in Hormel Foods Corporation (NYSE:HRL), up from 25 in the previous quarter. The consolidated value of these stakes is more than $604.3 million.