Should Dividend Growth Investors Buy This Warren Buffett Stock?
Big dividend hikes are a common way that mature businesses demonstrate a commitment to their shareholders. This is one reason why, under the direction of Chairman and CEO Warren Buffett, Berkshire Hathaway's $382 billion investment portfolio is loaded with dividend growth stocks.
Among the holding company's dozens of investments, its stake in Mondelez International (NASDAQ: MDLZ) is one of the smallest, valued at just $43 million. Is this consumer staples stock a buy for investors seeking strong dividend growth after its recent 10.4% hike in its quarterly dividend per share to $0.43? Let's dig into Mondelez's fundamentals and valuation to resolve this question.
It's a well-known fact that Berkshire Hathaway prefers to invest in businesses with tremendous brands that are in high demand. The reasons for this aren't complicated: Brands that are part of customers' routines benefit from more frequent consumption, which also provides owners with the pricing power necessary to grow net revenue and profits.
Source Fool.com