Why I Just Added More Hormel Stock to My Portfolio

Hormel Foods (NYSE: HRL) has been a core part of my portfolio for a long time. I bought the shares when they were yielding around 2.3% or so. The yield today is again roughly 2.3%, which is toward the high end of the company's historical yield range. That high yield encouraged me to buy more stock. But it wasn't the only reason I jumped in again.

One of the big reasons why Hormel's yield is back up to the point where I am interested is that inflation is on the rise. It's a big deal and will likely crimp the company's earnings, as it has to pay more to hire employees, transport products, and acquire ingredients. But inflation isn't new; the food maker has dealt with this before and it still managed to increase its dividend for 55 consecutive years. Indeed, you don't get to Dividend King status without working through hard times.

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Source Fool.com