Investing in Chocolate Stocks

Chocolate is one of the most popular sweet treats on the planet. Global annual sales are approaching $135 billion. As consumers in developing countries acquire more wealth, they consume more chocolate. That's driving steady growth in the chocolate market of about 4% per year.

Chocolate is a favorite for many investors, too. A handful of snack food conglomerates dominate the industry. Given their size, growth is rather pedestrian. However, if you're after slower but more stable growth paired with dividend income, chocolate stocks can be a tasty option.

Mondelez (MDLZ -1.19%) is another snack food giant, and on the chocolate side, you'd know the company by its ownership of brands such as Oreo, Cadbury, Chips Ahoy!, Milka, and more. In 2025, it ranked as the No. 2 player in the chocolate market, with a 12.3% share of the market.

Mondelez is the former snacking division of Kraft Foods (now Kraft Heinz (KHC -1.16%)), which spun off the business to shareholders in 2012. The company has bulked up its chocolate business since then, buying premium chocolate company Hu in 2021 and leading Mexican chocolate and candy company Ricolino a year later. It also reportedly explored the possibility of acquiring Hershey in late 2024.

This snacking specialist is another slow-grower, but it's been tightening up expenses and raising profitability over the past decade. Mondelez has also been expanding its presence in the health food segment as the global consciousness of healthy eating grows. It pays a dividend, too, and has been consistently raising since it became an independent business.

3. Hershey

The U.S.-based chocolatier Hershey (HSY -1.03%) is responsible for some of the most popular candies around. Besides the various products bearing its name, the company also makes Reese's, Almond Joy, Heath, Milk Duds, York Peppermint Patties, and others, as well as an expansive portfolio of baking products. Hershey's has also been expanding into snacking, buying SkinnyPop, Dot's Homestyle Pretzels, Pirate's Booty, and LesserEvil in recent years.

Although the Swiss claim dominance in high-end chocolate, Hershey is one of the fastest-growing businesses on this list. Hershey's has organically grown its revenue at a 4.6% annual rate over the last seven years. Meanwhile, it has delivered double-digit annual earnings, free cash flow, and total shareholder returns growth as its sweets and snacks brands have remained top of mind in North America and expanded into new markets internationally. Paired with the growth this business offers, Hershey also pays a dividend that it's been raising almost every year for decades.

4. Lindt & Sprungli

While Kraft Heinz (KHC -1.16%) spun off most of its chocolate business when it created Mondelēz, the company still has some exposure to the chocolate market.

Kraft Heinz owns Baker's Chocolate, which sells bulk chocolates (including white and unsweetened) used by professional and home bakers. Additionally, the company's Jello-O brand sells chocolate-flavored instant puddings and pie fillings.

6. Tootsie Roll Industries

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