Dividend stocks with high yields are often a red flag. When investors don't trust the Dividend, the share price falls, and the yield rises abnormally high. A company that consistently raises its Dividend is a green flag. Increasing dividends signal management's confidence in the business.

So, what happens when a Dividend King, a stock with 50 or more years of consecutive dividend growth, trades at its highest-ever dividend yield? That's where Hormel Foods (NYSE: HRL) finds itself today.

The question is whether Hormel's yield is an opportunity or a trap.

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Source Fool.com