Hershey dividend: cash flow, yield and history
Hershey's dividends begin at an annualized rate of $5.81. In 2025, Hershey generated US$1,822,745 thousand of free cash flow and US$1,757,285 thousand of analytical real free cash flow, but that cash also competes with investment, debt and buybacks.
How much does Hershey pay in dividends?
Dividends begin at the annualized rate of $5.81. The base case increases them to $6.10 and then $6.38, below the pace implied by a full earnings recovery. The bear case holds the payout at $6.00 after a pause, while the bull case reaches $6.24 and then $6.72. The current rate and long record of uninterrupted payments support continuity, but debt, investment and repurchases compete for cash.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Dividends per share | 5.81 (5.81 / 5.81) | 6.10 (6.00 / 6.24) | 6.38 (6.00 / 6.72) |
Is Hershey's dividend covered by its cash?
Free cash flow is operating cash less capital spending. Hershey generated US$1,822,745 thousand on that simple basis in 2025, down from US$1,925,654 thousand in 2024. Deducting stock compensation produces analytical “real free cash flow” of US$1,757,285 thousand, because shares given to employees still transfer value even without an immediate cash payment.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,822,745 | 1,925,654 | 1,552,081 | 1,808,356 | 1,587,007 |
| − Dividends paid | 1,085,296 | 1,084,802 | 889,071 | 775,030 | 685,987 |
| − Share buybacks | 0 | 494,191 | 264,913 | 388,964 | 457,946 |
| = Free cash flow not paid out | 737,449 | 346,661 | 398,097 | 644,362 | 434,324 |
| Paid out, % of free cash flow | 59.5% | 82.0% | 74.4% | 64.4% | 72.1% |
What this means. The company's own figure uses only short-term debt, while ours includes all borrowed money, so our debt number is much higher.
What could change Hershey's dividend?
Free cash flow is the cash left after Hershey collects from customers, pays suppliers and invests in factories, equipment and software. Its 5.4% yield is only slightly above the 5.15% 10-year U.S. Treasury yield on October 19, 2026, and it is not a promised return. Cash can be tied up in cocoa and inventory before holiday sales, while planned 2026 capital spending of $425 million to $475 million limits what remains for dividends or debt repayment.
The bull case would become more credible if cocoa coverage rolls off quickly, takeaway stabilizes and Dot’s capacity and snack brands produce organic profit. The October 29, 2026 earnings release is the next dated test.
What is Hershey's dividend yield today?
The dividend yield is 3.5%, but it comes from the same cash pool as reinvestment, so it should not be added to the free-cash-flow yield. Hershey also has two share classes: Common Stock has one vote per share, while Class B has ten. Common receives a dividend 10% higher, so the two classes offer different combinations of income and control.
| Today (Oct 19, 2026) | |
|---|---|
| Share price | 167.00 |
| Free cash flow yield (calculated) | 5.4% |
| Real free cash flow yield (calculated) | 5.2% |
| Dividend yield (calculated) | 3.5% |
What this means. The price to book number uses company net assets and shares from June 28 but stock value and shares from the newer July 27 count, so its dates do not match exactly.