After the interest rate cuts, will dividend stocks win the race in 2025?

Dear stock market players and dividend pearls.

Where will you invest after the interest rate cuts? Bonds!

Or like the Swiss, did you know they have a key interest rate of 0.75%, or dividend favorites and aristocrats:

$LISN (+0%)

$SIKA (-2.18%)

$STMN (+0.39%)

$TECN (+0.47%)

$GIVN (+0.3%)

$NOVN (-0.1%)

$ROG (+0.46%)

>4% yields are:

$BALN (+0.26%)

$SCMN (-0.37%)

$NESN (-0.19%)

$$

Chart technology from the picture book X

Nestlé

Nestlé makes the most of your milk

$NESN (-0.19%)

You have the unique opportunity to help El Primo:

what do you think about the future of Nestlé?

$NESN (-0.19%)

Dividends the gift of companies

Dear investors

Today's question is which dividend stock is the high flyer?

The shares are different in different areas, i.e. is the share a growth share or a dividend share.

These are the two comparisons with the characteristics. This means that if I want to have a dividend portfolio, I have to choose the dividend stocks. The dividend yield is a characteristic of the share. I should pay attention to this when it approaches the double-digit yield figure, whether this pays off positively is questionable as it has to decide whether to pay out the yield and go into debt or whether to let the yield fall to compensate for the losses.

The companies that achieve a constant yield distribution are obviously becoming safer year after year, but the royal companies have a 50-year dividend payout.

But the past is not the future.

So I would concentrate on the steady development of the share price and check whether the development is positive. The motivation is to be self-aware and prove my abilities. So I know how it works with investing in my own research of the market. The feeling of movement is an up and down of emotions and it is like a betting ticket only that it is not a matter of winning or losing after 90 minutes but it is only over when I sell the share again and then I know whether I have won or lost.

If I want to win, I simply have to have time and decide whether to take the short profit or whether I have more time and short-term fluctuations don't cause panic. Then I let the right stock pay dividends until the end of the success.

My personal favorites are:

1 $Coca-Cola

2$PG (-1.24%)

3$JNJ (+0.03%)

4$NESN (-0.19%)

5$MCD (-0.31%)

6$BLK

7$MSFT (-1.05%)

8$WMT (-2.1%)

9$XOM (-0.4%)

10$V (-0.14%)

These are some pretty stable companies.

Which company is your best dividend stock?

Let me know which one you favor ✌️

Don have a great time during the rest of the year and enjoy the good things in life 🫶🎄⛄️🧘📊🆕🎆

Battle for the bean - High costs and their consequences: How Nestlé, Hershey & Co. fight

Last year was a challenge for the food and consumer goods industry like never before. The sharp rise in input costs - particularly for raw materials such as cocoa, sugar and milk - hit even industry giants such as $NESN (-0.19%), $MDLZ (-1.01%)

$HSY (+0.03%) and
Meiji ($2269) (-1.29%) - Asia's largest chocolate producer from Japan - were hit hard. These companies have had to deal with exploding costs that have put massive pressure on both margins and share prices. At the same time, they have developed various strategies to counter this pressure - with mixed success, as their latest quarterly reports show.

A look at the past year

2024 was characterized by exceptionally high commodity prices. Cocoa reached record highs. Due to droughts and weather disasters, the price of a tonne of beans doubled to around 8,700 euros. And transportation costs also rose due to global supply chain problems. These developments were directly reflected in the margins.

At #hershey for example, the gross margin fell by 3.6 percentage points in the third quarter of 2024, despite significant price adjustments. Nestlé fared similarly, with its operating margin shrinking to around 17%, which is below previous peak values.

Meiji, achieved sales growth of 4.2% in the first half of 2024, but operating profit in the food segment fell by 6.9%.

Attempts to curb costs

The companies have responded to the challenges with various measures:

Price adjustments

• Nestlé implemented price adjustments of 1.6% in the first nine months of 2024. However, these were not enough to compensate for the increase in input costs.
• Mondelēz increased prices by 5.1% in the third quarter of 2024. While this supported sales growth of 5.4%, the success was largely based on the price increases and not on increased sales volumes.
• Hershey was able to stabilize in the short term with price adjustments, but recorded a 1.4% decline in sales in the third quarter of 2024.

Efficiency gains

• Nestlé and Hershey invested in automation and digital transformation to reduce costs in the long term.
• Meiji implemented optimizations in production and focused on higher-margin products.

Portfolio optimization

• Mondelēz expanded its portfolio in high-margin segments, which contributed to an improvement in the gross margin. It acquired the Chinese cookie manufacturer Evirth in order to gain a foothold in the Asian market.
• Meiji restructured its sales organization in Asia to focus on profitable markets.

Despite these efforts, most companies were only able to partially offset the increased costs. Consumers react sensitively to price adjustments, and inflation puts additional pressure on purchasing power. This limits the scope for further price increases.

Analysis: Which shares are still worth buying?

Despite the challenges, there are differences between the four companies that are crucial for investors. In order to make the best choice, we look at the most important key figures such as dividend growth, valuation and undervaluation.

On 'getquin' I asked the community, Which chocolate stock is your favorite?

More than a third chose Mondelez.

Let's take a look at the most important fundamental data. Basically, all valuations look very good right now. But as investors, we now want to separate the wheat from the chaff - or the beans from the fruit.

Valuation of the shares

Meiji Holdings: Strong growth, but expensive

Meiji boasts impressive dividend growth of 15.39% over the last ten years - a top figure in this comparison. The last five years have also been positive at 6.00%. However, the pace could slow down, as the estimated dividend increases are now only 4.21%.

One catch is the valuation: with an adjusted price/earnings ratio (P/E) of 23.6, Meiji is rather expensive compared to its competitors. The moderate undervaluation (-16%) leaves room for price fantasies. Meiji remains an interesting option for long-term dividend hunters.

Mondelēz: The balanced choice

Mondelēz presents itself as the all-rounder in this comparison. With an adjusted P/E ratio of 17.6, the share is fairly valued. In addition, there is reliable dividend growth of 11.95% over ten years and estimated increases of 9.26%. The moderate undervaluation (-15%) also suggests further potential.

This makes Mondelēz the ideal choice for investors looking for a mix of stability, growth and a fair valuation.

Nestlé: plenty of upside potential, but low growth

Nestlé impresses with an undervaluation of -28.4% - the highest discount in the comparison. However, growth leaves a lot to be desired: dividend increases are a meagre 3.57% (ten years) and an estimated 2.37%.

One plus point is the favorable adjusted P/E ratio of 15.7. Anyone looking for stability and not expecting rapid increases could hope for a good recovery from Nestlé. However, this may take time.

The Hershey Company: High growth rates, high price

Hershey impresses with estimated dividend growth of 17.94 % - the clear frontrunner. The last five years were also strong at 13.59 %. However, this comes at a price: an adjusted P/E ratio of 19.6 and an undervaluation of only -13.7% make the share more expensive than Nestlé or Mondelēz and therefore not a bargain choice.

Long-term investors might still like Hershey - especially because of the high dividend increases.

Mondelēz ahead

Of the four stocks, in our opinion Mondelēz currently offers the best combination of dividend growth, fair valuation and potential. Nestlé is a solid defensive alternative, while Hershey and Meiji remain exciting for growth-oriented dividend hunters. The decision ultimately depends on your investment horizon - but for a balanced overall package, Mondelēz is the most attractive investment idea of the four. No investment advice.

No investment advice. Follow with pleasure Instagram. More on https://www.dividenden-rechner.de/aktien-analysen/teurer-kakao

Analyst updates, 21.11.

⬆️⬆️⬆️

- BERNSTEIN RAISES TARGET FOR NVIDIA TO USD 175 (155) - 'OUTPERFORM' $NVDA (+2.01%)

- JPMORGAN RAISES TARGET FOR NVIDIA TO 170 (155) USD - 'OVERWEIGHT' $NVDA (+2.01%)

- EVERCORE ISI RAISES TARGET FOR NVIDIA TO 190 (189) USD - 'OUTPERFORM' $NVDA (+2.01%)

- JEFFERIES RAISES TARGET FOR SIXT STEMS TO EUR 110 (100) - 'BUY' $SIX2 (+0.72%)

- DEUTSCHE BANK RESEARCH RAISES RHEINMETALL TO 'BUY' (HOLD) - TARGET 700 (550) EUR $RHM (-0.78%)

- BARCLAYS RAISES TARGET FOR FRESENIUS SE TO EUR 40 (38) - 'OVERWEIGHT' $FRE (-0.84%)

- WARBURG RESEARCH raises the target price for ALSTRIA OFFICE from EUR 3.40 to EUR 7.10. Hold. $AOX (+0.13%)

- BERNSTEIN raises the price target for ESSILORLUXOTTICA from EUR 194 to EUR 200. Market-Perform. $EL (-0.22%)

⬇️⬇️⬇️

- DEUTSCHE BANK RESEARCH lowers the price target for NESTLE from CHF 87 to CHF 85. Hold. $NESN (-0.19%)

- DEUTSCHE BANK RESEARCH lowers the price target for MEDIOS from EUR 23 to EUR 18. Buy. $ILM1 (+1.37%)

- ODDO BHF lowers the price target for GRENKE from EUR 27.30 to EUR 18.30. Neutral. $GLJ (+0.79%)

- BERNSTEIN lowers the price target for KERING from EUR 260 to EUR 220. Market Perform. $KER (+0.06%)

- BERNSTEIN lowers the price target for LVMH from EUR 795 to EUR 700. Outperform. $MC (-0.25%)

- BERNSTEIN lowers the price target for VESTAS from DKK 250 to DKK 215. Outperform. $VWS (-2.71%)

- JEFFERIES lowers the price target for SMA SOLAR from EUR 19 to EUR 14. Hold. $S92 (+0.6%)

- JEFFERIES lowers the price target for VERBIO from EUR 27 to EUR 22. Buy. $VBK (-1.57%)

- JEFFERIES lowers the price target for PVA TEPLA from EUR 14.50 to EUR 12. Hold. $TPE (+1.5%)

- HSBC downgrades TARGET to Hold. Target price USD 138. $TGT (-0.34%)

- UBS lowers the price target for BAYER from EUR 30 to EUR 22. Neutral. $BAYN (+0.17%)

Nestlé presents growth plan

awp, 19.11.2024 ; DE/EN ; 1 minute

Nestlé's ($NESN (-0.19%)) new CEO Laurent Freixe presents his plans for the future. The Group wants to drive forward "operational excellence". To this end, he is investing in marketing and cutting costs. According to a statement issued on Tuesday, Nestlé will increase its investment in advertising and marketing activities to 9 percent of sales by the end of next year. This currently stands at around 8 percent. In this way, Nestlé intends to drive growth, as the company announced at its Investor Day on Tuesday.

The company will "make targeted investments in successful brands and growth platforms, focus innovation activities even more strongly in order to achieve a greater impact, and systematically address underperforming areas", according to the statement.

Nestlé intends to achieve the additional investments this will entail through rigorous cost-cutting measures. In addition to the savings activities already underway, management aims to make additional savings of at least CHF 2.5 billion by the end of 2027.

The medium-term targets have been lowered. Nestlé now expects organic sales growth to be "4 percent plus in a normal business environment". The underlying operating profit margin is expected to be "17.0 percent plus".

I am sticking to my position for the long term. No matter how the world turns, people will always eat and drink. In addition, the pumping rights for drinking water are invaluable.

Happy investing!

GG

-----------

EN:

Nestlé presents growth plan

awp, 19.11.2024 ; DE/EN ; 1 minute

Nestlé's ($NESN (-0.19%) ) new CEO Laurent Freixe presents his plans for the future. The company wants to drive "operational excellence". To this end, he is investing in marketing and cutting costs. According to a statement issued on Tuesday, Nestlé will increase its investment in advertising and marketing activities to 9 percent of sales by the end of next year. This currently stands at around 8 percent. In this way, Nestlé intends to drive growth, as the company announced at its Investor Day on Tuesday.

The company will "make targeted investments in successful brands and growth platforms, focus innovation activities even more strongly in order to achieve a greater impact, and systematically address underperforming areas", it said.

Nestlé intends to achieve the additional investments this will entail through rigorous cost-cutting measures. In addition to the savings activities already underway, management aims to make additional savings of at least CHF 2.5 billion by the end of 2027.

The medium-term targets have been lowered. Nestlé now expects organic sales growth to be "4 percent plus in a normal business environment". The underlying operating profit margin is expected to be "17.0 percent plus".

I am sticking to my position for the long term. No matter how the world turns, people will always eat and drink. In addition, the pumping rights for drinking water are invaluable.

Happy investing!

GG

$NESN (-0.19%) : Additional purchase at 83 euros today 🤓