Mondelez: Stable growth and increasing dividends provide an attractive investment opportunity
Mondelez $MDLZ International is a potentially attractive option due to its long-term strategy of steadily increasing dividends. It raised its dividend by 11% in June and has regularly delivered double-digit dividend per share growth over the past five years, providing investors with a stable yield. Currently, Mondelez's dividend yield is around 2.6%, reflecting its steady growth potential.
Strong brands and global positioning
$MDLZ has a strong position in the global food industry with popular brands such as Oreo, Milka, Cadbury, Ritz, Chips Ahoy! and Clif. It is the largest seller of biscuits and the second largest player in the chocolate market. As a result, Mondelez is able to effectively meet the growing demand for snacks, with approximately 88% of consumers indulging in snacks every day and 76% being loyal to specific brands.
Growth and financial strategy
$MDLZ plans to grow its sales by 3% to 5% annually, which should lead to high single-digit earnings per share growth and free cash flow of over $3 billion per year. The company is using this free cash flow to make acquisitions, repurchase shares, and continue to increase dividends, providing ongoing value for its shareholders.
Mondelez is a solid choice for investors looking for stable growth potential, a regularly increasing dividend, and a strong market presence. With a long-term strategy of increasing dividends, strong free cash flow, and consumer loyalty to its brands, Mondelez is poised to continue delivering attractive returns to its shareholders.