Hershey(HSY) The Motley Fool·2024-11-09 08:15Core Viewpoint - The article highlights two quality businesses, Realty Income and Hershey, which currently offer attractive dividend yields and may be undervalued despite recent market highs. Realty Income - Realty Income is a leading real estate investment trust (REIT) with a 55-year history of paying dividends, required to distribute at least 90% of its taxable income to investors [2][3] - The company has a diversified portfolio of over 15,400 properties, with major clients including FedEx, Wynn Resorts, Walmart, and Home Depot, indicating strong tenant quality [3][4] - Realty Income plans to invest 0.2635 per share, with a forward yield of 5.41%, as the stock is trading 28% below its recent highs [6] Hershey - Hershey is a leading confectionery brand with a portfolio that includes well-known products like Reese's and Kit Kat, but its stock is down about 35% from its peak due to recent weakness in discretionary spending [7][8] - Despite challenges, Hershey anticipates a 1% revenue increase for the year, with adjusted earnings expected to be 1.37 per share, resulting in a forward yield of 3% [8] - The confectionery market is valued at $586 billion and is projected to grow at a compound annual rate of 5.4% through 2029, indicating long-term demand for Hershey's products [9] - Current inflationary pressures are affecting Hershey, but this situation presents a potential buying opportunity for investors, as the high dividend yield may be seen as a bargain in the future [10]