Inflation is difficult for everyone since it raises prices. This includes manufacturers of consumer goods who are facing higher input prices. However, Wall Street often overestimates this industry, which might provide chances for long-term investors. If you have $1,000 to play with, two stocks to consider today are Hormel Foods stock (NYSE:HRL) and Unilever stock (NYSE:UL).

Long Term Stocks

1. Hormel Stock: Consistent Dividend growth

Obviously, investors should only invest money they do not anticipate requiring in the near future. This allows it to expand over time. That is precisely what Hormel Foods stock (NYSE:HRL) has done for investors throughout time, emphasizing dividend growth.

To put it in perspective, Hormel has grown its dividend for 50 straight years, making it a Dividend King. That’s outstanding, and the pace of dividend increase is even more astounding. The dividend has risen at an annualized pace of 13% during the last decade. In other words, the dividend has increased from $0.30 per share each year in 2012 to $1.04 in 2022. That is enormous.

The one disadvantage is that the yield is now “just” 2.3%. That is, however, historically high for the firm, indicating that it is being priced low right now as investors worry about the effect of inflation on margins. However, food manufacturers such as Hormel have a long history of passing on rising costs to consumers via price rises.

2. Unilever Stock: Regaining Control

Unilever stock (NYSE:UL) has the same inflationary challenges as Hormel stock, which it should finally overcome. Only this consumer-staples firm (which sells both food and personal-care goods) is coping with a series of unfavorable occurrences that have left investors with a bad taste in their mouths.

For example, the corporation attempted to acquire GSK’s (previously GlaxoSmithKline) over-the-counter healthcare business at an unfavorable price. That agreement was subsequently scrapped, but it paved the way for activist investor Nelson Peltz to purchase a stake in the firm and eventually get a seat on the board.

The fact that so much is happening at once helps explain why the dividend yield is 4.3%. As with Hormel stock, this is a historically high number but one that income-focused investors will likely value more.

Unilever has been around for a long time, dating back to the mid-1800s, and it seems to be able to weather the present storm. And, with some outside aid (from Peltz), there’s reason to hope it may ultimately flourish again. Meanwhile, you are paid handsomely to wait for brighter days.

Things That People Purchase

Businesses that provide products that people need and use on a daily basis underpin both Hormel and Unilever. While Hormel is better suited to dividend-growth investors and Unilever to those seeking current income, both stock look to be selling at good levels now.

You should consider these basic stocks if you have $1,000 or more to invest. You’ll probably discover that one of them fits well within your portfolio, if not both.

Featured Image-  Megapixl @ Noodles73

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