Mondelez International Inc's Dividend Analysis
Assessing the Upcoming Dividend and Mondelez International Inc's Financial Health
Mondelez International Inc (NASDAQ:MDLZ) recently announced a dividend of $0.43 per share, payable on 2024-01-12, with the ex-dividend date set for 2023-12-28. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Mondelez International Inc's dividend performance and assess its sustainability.
What Does Mondelez International Inc Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Mondelez International Inc operates as a heavyweight in the global snacking industry. Since its inception from Kraft Foods in October 2012, the company has established a significant presence across various snack categories. With a diversified product lineup including Oreo, Chips Ahoy, Halls, and Cadbury, Mondelez International Inc has a strong foothold in the biscuit, chocolate, gum/candy, beverage, and cheese and grocery sectors. The company's global reach is extensive, with nearly 40% of its revenue stemming from developing markets, a third from Europe, and the balance from North America, as of the end of fiscal 2022.
A Glimpse at Mondelez International Inc's Dividend History
Mondelez International Inc has a commendable track record of consistent dividend payments dating back to 2001, with distributions occurring quarterly. Since 2013, the company has raised its dividend annually, earning it the status of a dividend achievera testament to its commitment to providing shareholders with a steady income stream. The historical trend of annual Dividends Per Share is illustrated in the chart below.
Breaking Down Mondelez International Inc's Dividend Yield and Growth
Mondelez International Inc boasts a trailing dividend yield of 2.22% and a forward dividend yield of 2.39%, indicating an anticipatory increase in dividend payouts over the next year. Over the past three, five, and ten years, Mondelez International Inc has demonstrated robust annual dividend growth rates of 10.50%, 12.10%, and 8.60%, respectively. Consequently, the 5-year yield on cost for Mondelez International Inc stock stands at an attractive 3.93%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a critical measure for evaluating dividend sustainability. Mondelez International Inc's ratio of 0.47 implies a balanced approach to distributing earnings and retaining capital for growth and unforeseen challenges. The company's profitability rank stands at 7 out of 10, indicating strong profitability relative to peers. This is further corroborated by a decade-long streak of positive net income.
Growth Metrics: The Future Outlook
Mondelez International Inc's growth rank of 7 suggests a favorable growth trajectory. The company's revenue per share and 3-year revenue growth rate showcase a robust revenue model, with an average annual increase of 8.60%, outperforming approximately 56.71% of global competitors. The 3-year EPS growth rate reveals a steady increase in earnings, which is crucial for maintaining dividends, outperforming approximately 49.02% of global competitors. Additionally, the 5-year EBITDA growth rate of 6.70% surpasses the performance of approximately 52.21% of global peers.
Conclusion: Mondelez International Inc's Dividend Outlook
Mondelez International Inc's commitment to consistent dividend growth, balanced payout ratio, and strong profitability metrics paint a positive picture for current and prospective investors. The company's solid growth metrics further bolster confidence in the sustainability of its dividends. As Mondelez International Inc continues to navigate the dynamic snack industry, its financial health remains a beacon for value investors seeking reliable income streams.
For investors aiming to discover high-dividend yield opportunities, GuruFocus Premium provides a valuable tool with the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
