Are chocolate stocks a good investment right now?

Chocolate is a favorite for many investors, too. The industry is dominated by a handful of snack food conglomerates, though, and average growth for these companies is pedestrian. But if slower but more stable growth paired with dividend income is what you're after, chocolate stocks are worth a look right now. Image source: Getty Images.

Could a reversal in chocolate price make cocoa-reliant stocks more attractive?

While companies can hedge those price spikes, hedging is a cost. So in looking forward to a reversal in the price of chocolate after such a rare move, it could make cocoa-reliant stocks more attractive. More importantly, these are well-run businesses for which fluctuations in the price of a key underlying commodity is not new.

Why have chocolate prices risen 11% over the past year?

Chocolate prices have risen 11% over the past year driven by surging cocoa costs (CC=F). The El Niño weather pattern has disrupted major cocoa-producing regions, causing supply shortages that have caused cocoa futures to spike dramatically.