Dollar General and Hershey offer high dividend yields

Investing in high-yield dividend stocks can be a smart strategy, especially during tough economic times. Two companies currently offering attractive dividends are Dollar General and Hershey. Both have seen their stock prices drop due to recent financial challenges, but they have strong potential for future growth. Dollar General is a major discount retailer with over 20,000 stores in the U.S. and Mexico. The company faced challenges such as higher grocery prices, which led to less foot traffic and a decrease in earnings. Despite a 32% drop in earnings per share over the past year, Dollar General continues to show some growth in sales, particularly in its existing stores. The company is also working on improving its operations to increase profits in the coming years. Its dividend of $0.59 per share is sustainable, supported by its strong sales in rural areas, which provides a competitive edge. Hershey is a leading candy manufacturer known for iconic brands like Reese's and Kisses. The company has experienced pressure from high cocoa prices, which affected its profits. In 2024, Hershey saw a small sales increase, but earnings dipped due to rising costs. Management predicts earnings will decline further this year but expects overall sales growth. Hershey is focusing on cost management and has seen a rebound in its stock price recently. The company’s dividend payment of $1.37 per share remains strong, with a yield of 3.20%, signaling its ability to maintain financial health. Both companies face challenges but are adapting to current market conditions. Investors looking for reliable dividend stocks may find Dollar General and Hershey to be promising options for long-term growth.