Mondelez International Inc's Dividend Analysis
Understanding Mondelez International Inc's Upcoming Dividend Payment
Mondelez International Inc (NASDAQ:MDLZ) recently announced a dividend of $0.43 per share, payable on 2024-04-11, with the ex-dividend date set for 2024-03-27. 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?
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Mondelez International Inc has operated as an independent organization since its split from the former Kraft Foods North American grocery business in October 2012. The firm is a leading player in the global snack arena with a presence in the biscuit (49% of sales), chocolate (30%), gum/candy (12%), beverage (3%), and cheese and grocery (6%) aisles, as of the end of fiscal 2023. Mondelez International Inc's portfolio includes well-known brands like Oreo, Chips Ahoy, Halls, and Cadbury, among others. The firm derives around one third of revenue from developing markets, just more than one third from Europe, and the remainder from North America.
A Glimpse at Mondelez International Inc's Dividend History
Mondelez International Inc has maintained a consistent dividend payment record since 2001, with dividends currently distributed on a quarterly basis. Since 2013, Mondelez International Inc has increased its dividend each year, earning it the title of a dividend achiever, a distinction awarded to companies with at least 11 consecutive years of dividend increases. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Mondelez International Inc's Dividend Yield and Growth
As of today, Mondelez International Inc boasts a 12-month trailing dividend yield of 2.27% and a 12-month forward dividend yield of 2.38%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 10.50%, which further increased to 10.90% per year over a five-year period. The decade-long annual dividends per share growth rate stands at an impressive 12.30%. Consequently, the 5-year yield on cost is approximately 3.81%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of Mondelez International Inc's dividend can be gauged by its dividend payout ratio, which is currently 0.48. This ratio, which measures the percentage of earnings distributed as dividends, suggests that the company retains a substantial portion of its earnings for future growth and to cushion against downturns. Mondelez International Inc's profitability rank stands at 8 out of 10, reflecting good profitability prospects. The company's consistent positive net income over the past decade further solidifies its financial stability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must demonstrate robust growth metrics. Mondelez International Inc's growth rank of 8 out of 10 indicates a strong growth trajectory. The company's revenue per share and 3-year revenue growth rate of 12.50% per year outperform approximately 67.8% of global competitors. Mondelez International Inc's 3-year EPS growth rate and 5-year EBITDA growth rate of 6.70% also outperform the majority of its global peers.
Next Steps
In conclusion, Mondelez International Inc's dividend payments, growth rate, payout ratio, profitability, and growth metrics paint a picture of a company with a strong dividend profile. Its consistent dividend increases, sustainable payout ratio, and solid growth indicators suggest that Mondelez International Inc is well-positioned to continue rewarding shareholders with dividends. Investors seeking to expand their portfolio with high-dividend yield stocks can leverage tools like the High Dividend Yield Screener available to GuruFocus Premium users for more informed investment decisions.
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.
