Hershey Dividend Growth Resumes After Freeze

The Hershey Company has restarted dividend increases following a five-quarter freeze. After keeping its quarterly payout at $1.37 per share from February 2024 through November 2025, Hershey lifted the rate to $1.452 per share starting with the February 17, 2026 ex-date. The company has now held this higher payment for three consecutive cycles, including the payout scheduled for September 15, 2026.

The prolonged freeze reflected severe cost headwinds in 2025. Full-year 2025 net income dropped to $883.3 million from $2.22 billion in 2024, while operating income fell to $1.42 billion from $2.90 billion. Adjusted EPS dropped roughly 36% to 37% to $6.31, weighed down by historic cocoa prices and between $160 million and $170 million in tariff costs. Total dividends paid stood at $1.085 billion in 2025, matching 2024 and up from $889 million in 2023, while 2025 operating cash flow reached $2.28 billion.

Hershey showed an operational rebound across the first half of 2026. In the first quarter of 2026, adjusted EPS was $2.35 on revenue of $3.10 billion, up 10.7% year over year. Second-quarter 2026 adjusted EPS reached $1.90 on revenue of $2.79 billion, up 6.6%, while adjusted gross margin expanded 350 basis points to 41.6%. Full-year 2026 guidance calls for adjusted EPS of $8.36 to $8.52, representing growth of 32.5% to 35% compared to 2025.

On an earnings call on July 30, CFO Steve Voskuil stated that the company has visibility into cocoa deflation next year and that hedges will allow flexibility as markets normalize. As of June 30, 2026, the company held $791.2 million in cash against $5.61 billion in total debt. On September 11, 2026, Hershey shares closed at $173.32, down 2.62% year to date and 3.77% over the past year, compared with an analyst target price of $205.52.