Hormel dividend: cash coverage and outlook
MyStockButler's October 2026 analysis: Hormel's base payments are $1.18, $1.20, and $1.22 per share across the three periods. In fiscal 2025, Hormel paid $633.192 million in dividends against $534.349 million of free cash flow.
How much does Hormel pay per share?
The dividend rises slowly. Base payments are $1.18, $1.20, and $1.22 per share across the three periods. The bear case freezes the rate at $1.17, while the bull case reaches $1.24 by 2029.
| Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| Free cash flow per share | 0.97 | 1.84 | 1.42 | 1.56 | 1.41 |
| − Dividends paid, per share | 1.15 | 1.12 | 1.08 | 1.02 | 0.96 |
| = FCF not paid out, per share | 0.72 | 0.31 | 0.54 | 0.41 |
How much would Hormel's dividend pay you?
$10,000 invested in Hormel at its 5.6% dividend yield (our report of October 24, 2026) pays $560.00 in the first year, before tax. If its dividend per share keeps changing 4.6% a year, as it did from Oct 2021 to Oct 2025, and the dividends are reinvested, year 10 pays $1,513.56, with $9,516.83 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Does Hormel's cash cover its dividend?
Hormel has mainly used its cash for dividends, acquisitions and factories, and the dividend became strained in fiscal 2025. Operating cash was $845.251 million. After $310.902 million of capital spending, free cash flow was $534.349 million.
Hormel paid $633.192 million in dividends, exceeding free cash flow by $98.843 million and consuming 118.5% of it. The gap could come from saved cash, borrowing, asset sales or share issuance. One difficult year is not a crisis, but it shows that dividends and expansion compete for the same dollars.
| Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 534,349 | 1,010,297 | 777,636 | 856,059 | 769,518 |
| − Dividends paid | 633,192 | 614,960 | 592,932 | 557,839 | 523,114 |
| − Share buybacks | 0 | 0 | 12,303 | 0 | 19,958 |
| = Free cash flow not paid out | 395,337 | 172,401 | 298,220 | 226,446 | |
| = Paid out more than the free cash flow | 98,843 |
What this means. The company's own net debt is higher because it subtracts only cash from debt, while our count also subtracts short-term investments that can be sold quickly.
What could change Hormel's dividend?
Fiscal 2026 results will test whether adjusted earnings growth comes with stronger organic sales and lasting savings, rather than lower spending that reflects advertising timing. Brakebush is expected to close in fiscal Q1 2027. Hormel targets $20 million of annualized cost synergies by the end of fiscal 2028. A $500 million note matures in March 2027, putting debt reduction and cash generation alongside integration as near-term tests.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 1,128 (1,025 / 1,200) | 1,194 (968 / 1,300) | 1,248 (1,029 / 1,391) |
| Shares (millions) | 551 (551 / 551) | 551 (551 / 551) | 551 (551 / 550) |
| Dividends per share | 1.18 (1.17 / 1.18) | 1.20 (1.17 / 1.21) | 1.22 (1.17 / 1.24) |
| Net debt | 3,001 (3,132 / 2,892) | 2,917 (3,270 / 2,672) | 2,794 (3,364 / 2,367) |
What is Hormel's dividend yield against its price?
Cash supplies a separate test. The latest nine months produced approximately $549.4 million of free cash flow against $481.4 million of dividends, or about 1.14 times coverage. That cushion is positive but limited, especially if Hormel has postponed plant investment or faces higher meat costs. A high dividend yield describes today’s return; it does not guarantee tomorrow’s payment.