Mondelez International: Sweeten Your Dividend Growth Portfolio

Mondelez International Inc. (NASDAQ:MDLZ) is a consumer staples company that is likely not on the radar of many dividend growth investors. The company has had only six years of dividend growth, so it often fails to meet the threshold of dividend growth investors who often look for 10 years or more of dividend growth. Furthermore, the yield is low at only about 2.16%. But well-managed consumer staples companies can form the core part of a dividend growth portfolio. I only have to point the long-term dividend growth success of Hormel Foods Corporation (HRL), McCormick & Company (MKC), The Coca-Cola Company (KO), and PepsiCo Inc. (PEP) to validate this perspective. Mondelez has well-known market leading brands, a low payout ratio, low debt, a growing dividend, and the stock price is not volatile. These are all attractive characteristics. In addition, Mondelez ranked highly in my ranking model of consumer staples stocks with a Dividend Power Score of 8.98. For these reasons, I view Mondelez as a long-term buy.

Please read the complete article at my profile in Seeking Alpha.

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