Hershey, McDonald's, and NetEase: Undervalued Dividend Leaders

Hershey is trading near its 52-week low of $161.43, despite offering a forward yield of about 3.4%. The company's recent quarterly dividend payout of $1.452 works out to an annualized payment of $5.808.

Higher cocoa prices have pressured Hershey's costs and margins, but the company expects relief as spot cocoa prices have come off their 2025 highs. CFO Dave Hulays said at the Sept. 2026 Barclays conference that there is 'good visibility into deflation next year from cocoa,' which could improve earnings power and dividend flexibility.

Longer term, demand is still working in Hershey's favor, with Mordor Intelligence expecting the global chocolate market to grow about 6% per year to reach $246 billion by 2031. Analysts project earnings growth near 20% annually over the next several years, which would help support ongoing dividend growth.

McDonald's shares are down 19% year to date and sit near a 52-week low of $247.65, due in part to softer U.S. sales. However, McDonald's recently declared a $1.93 quarterly dividend, a 4% increase from the prior payout, marking its 50th consecutive annual dividend increase.

NetEase is one of China's leading game producers, with a trailing-12-month operating margin at 35%. The company recently declared a $0.48 dividend per American Depositary Share (ADS) to U.S. shareholders, which works out to an annualized payment of about 1.65%.