Should Dividend Growth Investors Buy This Blue-Chip Stock?

Dividend growth investing is gaining a real following over the past year as a viable strategy for boosting a retirement portfolio. And it's not hard to see why: Stocks that pay growing dividends tend to be less volatile overall, which can limit your losses during a correction or bear market. It's a big part of why Dividend growth stocks, as an investment class, often outperform the broader market when it comes to total return.

The consumer staple Mondelez International (NASDAQ: MDLZ) is a great example of this trend. Looking at the past five years, Mondelez and the S 500 index were performing pretty much on par with each other on a total return basis during the first four years. But since early 2022, Mondelez is crushing the S 500's performance. So looking at the past five years overall, the stock's 124% total returns are now nearly double the 69% total returns delivered by the S 500.

This raises the following question: Are shares of Mondelez a buy for dividend growth investors? Let's look at the company's fundamentals and valuation to find out.

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Source Fool.com