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
Mondelez International Inc. A Stock
The stock is an absolute favorite of our community with 29 Buy predictions and no Sell predictions.
With a target price of 73 € there is a slightly positive potential of 14.31% for Mondelez International Inc. A compared to the current price of 63.86 €.
